How Do Analysts View Cisco ahead of Its Q3 Results?

Cisco’s revenue

Hardware networking giant Cisco (CSCO) is scheduled to report its fiscal 2019 third-quarter earnings results on May 15. Analysts expect the company to post revenue of $12.9 billion in the quarter, a rise of 3.50% year-over-year from $12.46 billion in the third quarter of 2018.

Cisco’s sales are expected to rise 3.7% to $13.4 billion in the third quarter of fiscal 2020. Cisco’s sales are expected to rise at a compound annual growth rate of less than 3% annually from $12 billion in the third quarter of fiscal 2016 to $12.9 billion in the third quarter of fiscal 2019.

How Do Analysts View Cisco ahead of Its Q3 Results?

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Cisco’s earnings

While Cisco’s sales are expected to rise 3.5%, analysts expect the company’s adjusted EPS to rise 16.7% in the third quarter to $0.77, which indicates a high operating leverage. Cisco reported adjusted EPS of $0.66 in the previous year’s quarter.

Cisco beat analysts’ earnings estimates in each of the last four quarters. The company posted EPS of $0.73 in the second quarter, 1.4% higher than analysts’ estimate of $0.73. The company posted EPS of $0.75 in the first quarter, 4.2% higher than the estimate of $0.72.

As the chart above shows, Cisco reported EPS of $0.70 in the fourth quarter of 2018, 1.4% higher than analysts’ estimate of $0.70. The company also reported EPS of $0.66 in the third quarter of 2018, which was 1.5% above analysts’ estimate of $0.65.