What to Watch Wednesday May 14: Cisco's Quarterly Results

Cisco's shares are down by more than one percent ahead of its quarterly results, leaving investors nervous ahead of its earnings report on Wednesday. Cisco has managed to beat estimates in each of the last 10 quarters, but it will need another strong quarter to calm fears that Cisco is getting squeezed on price by upstarts in the networking space. The networking giant has set very low expectations for the quarter, with revenues predicted to decline by 6 to 8 percent from a year ago. Analysts are looking for earnings of $0.48 a share on $11.38 billion in revenues, and investors are keeping a close watch on gross margins, succession plans, and who will head the Internet of Things.