Inside the Analysts’ Expectations for Cisco’s Fiscal 3Q17

Cisco’s fiscal 3Q17 earnings

US-based (SPY) technology firm Cisco Systems (CSCO) will be announcing its fiscal 3Q17 results on May 16, 2017. Analysts estimate that the firm will post revenues of ~$11.9 billion, with a low estimate of ~$11.78 billion and a high estimate of ~$12.13 billion.

But even if Cisco meets revenue expectations of ~$11.9 billion, it would still mean a 0.9% YoY (year-over-year) fall. Cisco’s EPS (earnings per share) are estimated at $0.58, with a high estimate of $0.59 and a low estimate of $0.56.

Inside the Analysts’ Expectations for Cisco’s Fiscal 3Q17

As shown in the chart, Cisco beat analysts’ EPS estimate in fiscal 2Q17 by 1.8%, posting EPS of $0.57. Cisco also beat the analysts’ EPS estimate in fiscal 1Q17, fiscal 4Q16, and fiscal 3Q16 by 3.4%, 5%, and 3.6%, respectively.

Cisco has a market cap of $171 billion. By comparison, peer companies Nokia (NOK), Microsoft (MSFT), and IBM (IBM) have market caps of $35 billion, $529 billion, and $148 billion, respectively.

How did Cisco perform in 2Q17?

In fiscal 2Q17 Cisco reported revenue of $11.6 billion, a fall of 2% YoY (year-over-year), with EPS (earnings per share) of $0.57. While its product revenue fell 4%, its service revenue rose 5% in fiscal 2Q17. Analysts had expected EPS of $0.56 and revenue of $11.6 billion for the quarter.

Cisco’s product revenues were driven by a 14% YoY rise in its Security segment and a 4% YoY rise in its Collaboration segment in fiscal 2Q17. Revenues in its Switching, Routing, and Data Center businesses fell 5%, 10%, and 4%, respectively, in fiscal 2Q17. By comparison, revenue from its Service Provider Video segment fell 41%, whereas revenue from its Wireless segment rose 3% in fiscal 2Q17.