The Cisco (CSCO - commentary - Cramer's Take) Kid will be reporting numbers for its April quarter tomorrow after the close of regular market trading.
Current Street consensus estimates for the April quarter are for earnings of 36 cents per share on revenue of $9.75 billion. For the July quarter, the sellsiders are sitting on earnings of 39 cents per share on revenue of $10.30 billion. For the company's fiscal year ending July 2008, the Street is expecting earnings of $1.69 per share on revenue of $43.93 billion.
Here's what to look for and listen to from the earnings release and conference call tomorrow:
the state of the business globally (I am expecting comments that indicate overseas demand is strong but the U.S. continues to be weak);
expect flat service provider demand;
switching revenue and demand going forward (this segment could be seeing signs of a slowdown in the U.S.);
guidance overall (there is a possibility that Cisco could guide fourth-quarter numbers based on the extent of a U.S. slowdown);
order growth in commercial, domestic and international;
core infrastructure order growth;
customer wins;
details on recent merger and integration issues (if any); and
overall macro trends.
I remain cautiously optimistic that Cisco will provide at least in-line guidance and numbers, with a small probability that they might slightly decrease guidance.
Good luck going into the call.
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At the time of publication, Somaney had no positions in the stocks mentioned, although positions may change at any time without notice. Jay Somaney is a partner and fund manager with TSG Capital Partners, a hedge fund based in Plano, Texas, and founder of GlobalTechStocks.com, a subscription site that focuses on technology and Indian stocks (including ADRs), providing information, news and chatter. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Somaney appreciates your feedback; click here to send him an email.
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