What to Expect When Cisco (CSCO) Reports Fourth-Quarter Earnings After Market Close Today

NEW YORK (TheStreet) -- Cisco  (CSCO) reports fourth-quarter and full-year earnings results after the closing bell Wednesday, and here's what analysts are expecting from the technology company.

The consensus estimate calls for Cisco to report earnings of 53 cents a share on revenue of $12.14 billion for the fourth quarter. For the full year, the consensus estimate calls for earnings of $2.04 a share on revenue of $46.96 billion. In the third quarter, Cisco reported EPS of 48 cents, short of analysts' expectation of 51 cents.

The stock was down 0.4% to $25.05 at 11:18 a.m.

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Separately, TheStreet Ratings team rates CISCO SYSTEMS INC as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite currently having a low debt-to-equity ratio of 0.37, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.19 is very high and demonstrates very strong liquidity.
  • CISCO SYSTEMS INC's earnings per share declined by 8.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CISCO SYSTEMS INC increased its bottom line by earning $1.86 versus $1.49 in the prior year. This year, the market expects an improvement in earnings ($2.04 versus $1.86).
  • Net operating cash flow has slightly increased to $3,198.00 million or 3.36% when compared to the same quarter last year. Despite an increase in cash flow, CISCO SYSTEMS INC's cash flow growth rate is still lower than the industry average growth rate of 14.40%.
  • The gross profit margin for CISCO SYSTEMS INC is rather high; currently it is at 65.34%. Regardless of CSCO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 18.94% trails the industry average.
  • You can view the full analysis from the report here: CSCO Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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