Scott Moritz
Cisco (CSCO Quote - Cramer on CSCO - Stock Picks) fans expect another steady-as-she-goes showing to keep the bears at bay.
The San Jose, Calif., networking gearmaker is due to report its fiscal fourth-quarter results after the market closes Tuesday. It's widely expected that Cisco will, as usual, match Wall Street estimate for the latest quarter. But investors are anxious to hear CEO John Chambers' outlook for fiscal 2007. Cisco's report comes as tech stocks endure a brutal selloff. High-multiple names like Qualcomm (QCOM Quote - Cramer on QCOM - Stock Picks) have been hammered despite solid financial performance, while acknowledged leaders like Dell (DELL Quote - Cramer on DELL - Stock Picks) have been crushed by slowing growth. For its part, Cisco has lost 12% since July 4. The last month has brought mixed tidings from competitors in Cisco's core business of selling network equipment to corporations. But analysts are quick to point to areas like cable set-top boxes and Internet protocol TV for encouragement. "Next year will bring broadening opportunities for Cisco in IPTV and carrier video," RBC analyst Mark Sue wrote in a research note Wednesday. Sue rates Cisco, which earlier this year jumped into the cable business with its $6.5 billion buy of Scientific-Atlanta, a buy. Analysts are looking for Cisco to post a fourth-quarter adjusted profit of 28 cents a share, up from 25 cents a year ago, on $7.9 billion in sales, according to Thomson First Call. The picture is perhaps a bit more muddled than usual coming into Cisco's closely watched report, due primarily to the mixed results across the network equipment space. Rival Juniper (JNPR Quote - Cramer on JNPR - Stock Picks) offered only an incomplete accounting of its results last month. Juniper said revenue was on track but stayed mum on earnings, what with a stock-option probe continuing. Smaller Extreme (EXTR Quote - Cramer on EXTR - Stock Picks) had a solid second quarter but guided lower for the third period. To view Street Insight's video preview of Cisco, please click here.
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