This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cisco Earnings Preview: What Wall Street's Saying

ISI Technology Research analyst Brian Marshall - Neutral

"We expect a roughly in-line quarter for CSCO with the top and bottom lines both within guidance ranges (e.g., guidance of sales down 6-8% y/y and EPS of $0.47-0.49). Given widespread negative sentiment on the stock in the investment community, we see minimal downside risk from an in-line report and in-line guidance. We have many concerns that keep us on the sideline including margin pressure from alternative open networking solutions and lack of significant growth drivers outside the core routing/switching franchises. However, despite these issues, we continue to warm up to the CSCO story. While not as "open" as others, we believe CSCO is innovating on the product front and has a solid opportunity to retain the majority of its mainstream general enterprise installed base with more software-oriented, programmable products/technologies (e.g., Nexus 9k, APIC, etc.)."

UBS analyst Amitabh Passi - Buy, $26.50 price target

"For the earnings report, we believe in-line results with in-line guidance will be good enough as long as Cisco shows improvement in 3 key metrics: a) bookings, especially for Cisco's new platforms - NCS and ACI (incl. 9k), and in other key areas including security, mobility and datacentre; b) backlog; c) product gross margin, with UBSe GM of 59.1%, modestly above the 58.8% reported in F2Q. We believe Cisco will need to show progress on GM to comfort the bulls and assuage the bears. As evident in our forecasts, our growth expectations remain muted for the nearterm with Y/Y revenue declines of 7% and 6% for F3Q and 4Q, respectively, as we still foresee Cisco in a state of transition while the macro environment remains volatile."

>>Read More: Why Cisco Investors Should Be Patient

>>Read More: How to Trade Earnings for Cisco, Kohl's and Walmart, Plus 5 Others

-- Written by James Rogers in New York.

>Contact by Email.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs