A Look at Cisco’s Future Earnings and Revenue Growth

In the previous article, we learned that analysts expect Cisco’s (CSCO) revenue to rise 6% in the first quarter of fiscal 2019. Revenue is expected to rise 5.3% in the second quarter and 4.5% in fiscal 2019. Analysts have an average revenue estimate of $51.54 billion for Cisco in fiscal 2019. They expect its revenue to rise 3.1% to $53.14 billion in fiscal 2020 and 4.4% to $55.47 billion in fiscal 2021.

While Cisco’s revenue is expected to rise in the single digits in percentage terms in the fiscal years 2019, 2020, and 2021, its EPS are expected to rise at a higher pace. Analysts expect its EPS to rise 18% to $0.72 in the first quarter of fiscal 2019 and 15% to $0.72 in the second quarter of fiscal 2019.

While Cisco’s EPS could rise 15% to $2.99 in fiscal 2019, analysts expect its EPS to rise 9.4% in fiscal 2020 and at a CAGR (compound annual growth rate) of 9% over the next five years. The EPS of peers Ericsson (ERIC), Nokia (NOK), and Juniper (JNPR) are expected to rise at CAGRs of 243%, 17.8%, and 13.6%, respectively, over the next five years.