What's in Store for Cisco's 3Q Earnings? - Analyst Blog
2013年5月14日 - 7:20PM
Zacks
Cisco Systems,
Inc. (CSCO) is set to report third quarter 2013 results on
May 15. Last quarter it posted a 9% positive surprise. Let’s see
how things are shaping up for this announcement.
Growth Factors this Past
Quarter
Though Cisco was affected by the
sluggish macro environment, the company’s sales growth rates in the
second quarter were above the year-ago comparable period and better
than management guidance, attributable to the ramp of several
important products and strength in the Data Center, Switching and
Wireless lines of business. Order growth was quite encouraging and
the trend is reflective of Cisco’s superior strategy and
innovation.
However, margin expansion was
limited due to an unfavorable mix and increased expenditure on new
products.
The company’s restructuring
activities to expand its operations in certain strategic areas
including cloud computing and the pursuance of growth opportunities
in international markets could be potential catalysts going
forward. However, we believe that the intense competition in the
company's core businesses of routers and switches remains a matter
of concern.
Earnings
Whispers?
Our proven model does not
conclusively show that Cisco will beat earnings estimates this
quarter. That is because a stock needs to have both a positive
Earnings ESP (Read: Zacks Earnings ESP: A Better Method)and a Zacks
Rank #1, #2 or #3 for this to happen. That is not the case here as
you will see below.
Zacks ESP:
Both the Most Accurate estimate and the Zacks
Consensus Estimate stand at 45 cents. Hence, the difference is
0.00%.
Zacks Rank #4
(Sell): We caution against stocks with Zacks Ranks #4 and
#5 (Sell rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
momentum.
Other Stocks to
Consider
Our model states that a stock needs
to have both a positive earnings ESP and a Zacks Rank #1, #2 or #3
to beat earnings estimates. You could, therefore, consider other
stocks instead like:
Hasbro Inc (HAS),
with Earnings ESP of +3.03% and Zacks Rank #2 (Buy)
International Game Technology (IGT), with Earnings
ESP of +3.23% and Zacks Rank #2 (Buy)
Webcom Group Inc
(WWWW), with Earnings ESP of +2.38% and Zacks Rank #3 (Hold)
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
HASBRO INC (HAS): Free Stock Analysis Report
INTL GAME TECH (IGT): Free Stock Analysis Report
WEB.COM GROUP (WWWW): Free Stock Analysis Report
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