Cisco’s Revenue Is Expected to Rise 2.6% in Fiscal 2018



Revenue expected to be $49.26 billion in fiscal 2018

Earlier, we learned that analysts expect Cisco Systems’ (CSCO) revenue to rise 5.2% YoY (year-over-year) to $12.77 billion in the fiscal fourth quarter, reflecting revenue growth of 2.6% for Cisco in fiscal 2018. Analysts also expect the company’s revenue to rise 3.9% YoY to $12.61 billion in the fiscal first quarter of 2019 and 3.1% YoY to $50.79 billion in fiscal 2019.

In fiscal 2020, analysts expect Cisco’s revenue to rise ~3.2% YoY to $52.4 billion. The revenue growths of Nokia (NOK), Ericsson (ERIC), and Juniper Networks (JNPR) are expected to be 0.9%, -1.2%, and -6%, respectively, in fiscal 2018.

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Earnings estimate

As we can see in the chart above, Cisco’s sales rose marginally to $49.24 billion in fiscal 2016 but fell 2.5% YoY to $48 billion in fiscal 2017. Cisco posted EBITDA of $15.51 billion in fiscal 2015, and this rose over 6% to $16.46 billion in fiscal 2016.

Driven by revenue growth, Cisco’s EBITDA rose to $16.7 billion in fiscal 2017. It’s expected to reach $17.15 billion in fiscal 2018, $17.8 billion in fiscal 2019, and $18.24 billion in fiscal 2020.

Analysts expect Cisco’s non-GAAP (generally accepted accounting principles) EPS to rise 11.5% YoY to $0.68 in the fiscal fourth quarter. In fiscal 2018, its EPS are expected to rise 8.4% YoY to $2.59, while in fiscal 2019, its EPS are expected to rise 12.4% YoY to $2.91.

Analysts expect Cisco’s EPS to grow at a compound annual growth rate of 9.3% over the next five years compared to its growth rate of 5.05% over the last five years.


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