NEW YORK (TheStreet) -- Cisco Systems (CSCO) is expected to report a year-over-year increase in earnings per share but decline in revenue when it reports 2016 fourth-quarter financial results after Wednesday's market close.
Analysts surveyed by Thomson Reuters are looking for adjusted earnings of 60 cents per share on $12.57 billion in revenue.
For the year-ago period, the San Jose, CA-based technology giant posted adjusted earnings of 59 cents per share on $12.84 billion in revenue.
Wells Fargo maintained an "outperform" rating on the stock ahead of the company's results, noting that Cisco's risk/reward ratio is attractive, TheFly reports.
Cisco should at least meet analysts' estimates, given strong North American enterprise spending and "ongoing success" in growth markets, the firm noted. The company's margins should be helped by "favorable costs," and Cisco will likely report in-line guidance for the fiscal 2017 first quarter, Wells Fargo added.
Shares were down in mid-afternoon trading on Friday.
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Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Cisco's strengths such as its notable return on equity, expanding profit margins, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: CSCO
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.