Cisco's Positive Outlook

By Neil Zawacki
Updated: August 09, 2011

Cisco's Positive Outlook

Cisco, one of the nation’s leading technology companies, will be releasing its fourth quarter and year end earnings on August 11, 2011. The stock has traded below $14.40 over the last week and went as low as $14.27 on Monday morning. That represents a full $10.60 difference from its 52-week high of $24.87.

Industry analysts predict that the EPS (earnings per share) for Cisco will range somewhere between 31 cents to 42 cents for the financial quarter. If a consensus is reached at 38 cents, that will be 4 cents less than the EPS from a year ago. They also predict an overall $1.60 EPS for the fiscal year.

George Notter, an employee of Jefferies & Co, spoke briefly about public expectations for the results. He stated, “While the stock is cheap, it’s very early days in the company’s restructuring efforts—the company hasn’t yet addressed much the restructuring that’s necessary in our view. We believe that there’s significant inertia in the business and believe the outlook for the business can get worse.”

Despite this fear, Jefferies & Co stated in a research note that Cisco’s enterprise business is likely to be “decent” and that it will probably make up approximately 60% of Cisco’s sales for 2011.

John Chambers, the CEO of Cisco, is expected to spend a majority of Thursday’s phone call discussing potential ways to trim $1 billion in corporate expenses. He is also likely to face pushback from investors on sales, increased competition and price cuts in the switching gear market.
 

Featured Research
  • The Business Case for Updating an Aging Phone System

    You may think your business phone system is functional, but is it fully modern? In recent years, telecommunications technology has made major strides. A system that was perfectly serviceable ten years ago—or even five years ago—is now very out-of-date. more

  • [Infographic] 15 Questions to Ask When Selecting a VoIP Provider

    Deciding which phone system is right for your business can be difficult. With our VoIP technology blueprint, discover the top 15 questions you should ask VoIP vendors before you make a buying decision. more

  • 2017 Business VoIP Buyer's Guide

    In 2017, more business will transition to a VoIP phone system. If you are among them—or if you’ll be upgrading an existing VoIP system—you need to learn about the latest technologies and market trends. more

  • 2017 Business VoIP Trends

    VoIP and UC (Unified Communications) technology is advancing all of the time. In order to reap the many business benefits of VoIP, you need to learn about industry trends, including text messaging, WebRTC, Unified Communications as a Service, and more. more

  • The New 2016 IP Phone System Comparison Guide

    Choosing VoIP over traditional solutions makes sense for your business and your budget. But choosing the best VoIP solution isn't always easy. Our guide is an essential road map in your search for the best VoIP solution for your business. more

Related Articles