uploads/2019/05/cisco-fourth-quarter-1.png

What Does Cisco Expect in Q4 2019?

By

Updated

Earnings per share between $0.80 and $0.82

Cisco (CSCO) reiterated its guidance for the fourth quarter of 2019. The company expects revenue growth between 4% to 4.5% year-over-year. Cisco estimates adjusted gross margin to be between 64% and 65% and an adjusted operating margin between 31% and 32%.

Cisco has also estimated adjusted EPS between $0.80 and $0.82 in the fourth quarter of fiscal 2019. Revenue growth for networking peers such as Juniper Networks (JNPR), Ericsson (ERIC), and Nokia (NOK) is estimated to fall by 8.3%, 2.2%, and 5%, respectively, in the next quarter.

Article continues below advertisement

What does Wall Street expect from Cisco?

Analysts expect the company to post revenue of $13.3 billion in the fourth quarter, a rise of 3.50% year-over-year from $12.8 billion in the fourth quarter of 2018.

Cisco’s sales are expected to rise 3.8% to $13.8 billion in the fourth quarter of fiscal 2020, which means that Cisco’s sales are expected to rise at a compound annual growth rate of less than 2.5% annually from $12.56 billion in the fourth quarter of fiscal 2016 to $13.8 billion in the fourth quarter of fiscal 2020.

While Cisco’s sales are expected to rise 3.5%, analysts expect the company’s adjusted EPS to rise 15.7% in the fourth quarter to $0.81, which indicates high operating leverage. Cisco reported adjusted EPS of $0.70 in the fourth quarter of 2018.

Advertisement

More From Market Realist