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Cisco (CSCO) to Report Q1 Earnings: Key Factors to Consider

Cisco Systems CSCO is set to release its first-quarter fiscal 2023 results on Nov 16.

The company anticipates first-quarter fiscal 2023 revenues to increase in the range of 2-4% on a year-over-year basis. Non-GAAP earnings are anticipated to be between 82 and 84 cents per share.

The Zacks Consensus Estimate for revenues is pegged at $13.32 billion, indicating an increase of 3.28% over the year-ago quarter’s reported figure. Our estimate is pegged at $13.29 billion.

The consensus mark for earnings has been stable in the past 30 days at 84 cents per share. The figure suggests an increase of 2.44% from the prior-year quarter’s levels.

Cisco Systems, Inc. Price and EPS Surprise

Cisco Systems, Inc. Price and EPS Surprise
Cisco Systems, Inc. Price and EPS Surprise

Cisco Systems, Inc. price-eps-surprise | Cisco Systems, Inc. Quote

Let’s see how things have shaped up for Cisco prior to this announcement.

Factors Likely to Influence Q1 Results

Cisco’s first-quarter fiscal 2023 results are expected to benefit from easing supply chain constraints. The company’s extensive product portfolio and the varied end-user base are also expected to have positively contributed to its top-line growth.

Moreover, price hikes are expected to have somewhat offset inflation, thereby driving fiscal first-quarter top-line growth.

Cisco’s revenues are likely to have benefited from momentum in web-scale, servers, wireless, security and SD-WAN businesses. The company has been benefiting from ongoing investments that its customers are making to rapidly digitize their organizations.

Higher bandwidth requirements by customers are expected to have driven demand for Acacia’s optical solutions in the to-be-reported quarter.

Nevertheless, the fiscal first-quarter results are expected to reflect the lingering effects of COVID-related lockdowns in China as well as the negative impact of the ongoing war between Russia and Ukraine. Additionally, challenging macroeconomic conditions and the strong U.S. dollar have been major concerns.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the case here.

Cisco has an Earnings ESP of +1.46% and currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:

StoneCo STNE has an Earnings ESP of +45.46% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

STNE is scheduled to release its third-quarter fiscal 2022 results on Nov 17.

Intuit INTU has an Earnings ESP of +3.15% and a Zacks Rank #3.

INTU is scheduled to release its first-quarter fiscal 2023 results on Nov 29.

Salesforce CRM has an Earnings ESP of +7.13% and a Zacks Rank #3.

CRM is scheduled to release its third-quarter fiscal 2023 results on Nov 30.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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