Cisco Systems Inc. has always enthusiast investors with its earnings beat, and the company aimed at extending that streak on its upcoming fiscal first-quarter results after the market closes on November 16.

The tech giant reported a better-than-expected fourth quarter earnings results, but the announcements of layoffs balanced out that interesting news. The company’s revenue dropped for three consecutive quarters, and Cisco’s guidance suggests another decline for the fourth quarter.       

Analysts’ Expectations

The year-over-year revenue growth guidance of the company stood between -1% and 1%, excluding divestitures amid the first quarter. Meanwhile, the average analyst estimate for revenue settled at $12.31 billion, down by 2.7%.

Analysts are expecting the company to return to revenue growth during the second quarter, but it seemed that revenue shows weakness.      

Subsequently, analysts are expecting Cisco to post non-GAAP EPS of $0.59, settling in the middle of the guidance range, which suggests earnings to remain steady for the prior-year period.

Non-GAAP EPS rallied approximately 9% during the fourth quarter as gross margin were higher and operating expenses remained lower. However, the recent growth is unlikely to occur during the first quarter.    

New Position in Cisco Systems Inc.

Based on the most recent reports, the Capital Management Associates NY bought a new position in the tech giant during the second quarter. Shares bought stood at 7,200, with a total value of about $207,000.    


Analysts’ Recommendation

The company achieved an average rating of “Buy” from the thirty-eight rating companies that covers Cisco Systems Inc. Evidently, one investment analyst gave a sell rating on the stock, twelve issued a hold rating, twenty-four assigned a buy rating and one affirmed a strong buy rating.

The average twelve-month target price from the companies that have issued ratings on the stock to prior year settled at $33.00.  

Cisco has been included on investors’ most active stock list, with Morgan Stanley restating a “Hold” rating on the stock and setting a target price of $28.00 on July 18th. Goldman Sachs Group Inc. reaffirmed a “Neutral” rating and set a target price of $32.00 on August 18th.   

Several large investors have purchased and sold the company’s shares, with RS Investment Management Co. LLC upgrading its position in Cisco by about 18.7% in the second quarter.

Current Stance of Cisco Systems Inc. Stock

The chart below illustrates Cisco Systems Inc. stock’s movement ahead of the expected earnings beat for the fourth quarter.

Given a bullish tone on the tech giant’s company shares, several investors are currently calling for Buy position on the stock. In essence, stock prices showed a significant gap from Nov. 4 to Nov. 7 and is seen climbing.

In addition, the stock tried to break out on the upside at resistance 31.05 in a heavy trading volume and attempted a consolidating movement.



Given growing speculations on Cisco’s earnings report for the fourth quarter, with some analysts claiming it would not enthusiast investors, we conclude that market players should still wait on the sidelines as there aren’t any supporting candle as of this moment.

Get market insights and updates and subscribe to our daily newsletter! FSM News provides accurate market knowledge and information.