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Cisco Systems's Earnings: A Preview

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Benzinga Insights
·2 min read
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On Tuesday, February 09, Cisco Systems (NASDAQ:CSCO) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Cisco Systems EPS is expected to be around $0.75, according to sell-side analysts. Sales will likely be near $11.92 billion. In the same quarter last year, Cisco Systems reported EPS of $0.77 on revenue of $12.01 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

View more earnings on CSCO

The analyst consensus estimate would represent a 2.6% decline in the company's EPS figure. Revenue would be down 0.71% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

EPS Estimate

0.70

0.74

0.71

0.76

EPS Actual

0.76

0.80

0.79

0.77

Revenue Estimate

11.85 B

12.08 B

11.88 B

11.98 B

Revenue Actual

11.93 B

12.15 B

11.98 B

12.01 B

Stock Performance

Over the past 52-week period, shares of Cisco Systems have declined 0.22%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cisco Systems is scheduled to hold the call at 16:30:00 ET and can be accessed here.

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