Cisco Fans Getting Stoked

Cisco (CSCO Quote) fans expect a hearty serving of piping hot quarterly numbers after the market's close today.

The San Jose, Calif., Internet gearmaker is likely to deliver another balanced performance, with strong growth areas like developing markets helping to offset weaker pockets like tech spending among U.S. businesses, say analysts and investors.

Analysts' checks of Cisco's supply and distribution channels show no major departures from the usual sales flow. And gear peers like Juniper (JNPR Quote) and Ciena (CIEN Quote) have already turned in strong third-quarter results, signaling business is good for high-performance network plumbing suppliers.

A consensus of analysts' estimates has Cisco turning in an adjusted profit of 36 cents a share on $9.54 billion in sales, according to Thomson Financial First Call.

I expect they will deliver a "slight upside" to earnings, says one investor, referring, to the customary penny beat that Cisco has been able to hit with predictable frequency over the years. "Perhaps there will be a sprinkle of weak U.S. enterprise, but overall it should be bullish," says the money manager who is long the stock.

As always, the biggest suspense surrounds Cisco's outlook. In August, Cisco said it expected fiscal 2008 sales growth somewhere in a range between 13% and 16%. Analysts say it may be too soon for Cisco to guide up for its fiscal year ending in July.