Analysts Expect Significant Q4 Revenue Increase for Top Communications Equipment Company

Shares of Cisco Systems Inc. (NASDAQ: CSCO) are down in today’s trading; the stock touched a low of $22.96 in mid-day trading. At last check, it was down 0.12% to $23.36, with volume at 24.80 million.

The Cisco stock has a 52-week range of $20.68-$27.74. Year-to-date the stock is down 2.34%. The Cisco stock saw a sharp rally that began at the end of January and lasted through April. Following this, the stock declined sharply in May.

Cisco reported its third-quarter financial results on May 12. The company had reported third-quarter net sales of $10.4 billion. The company’s third-quarter GAAP net income stood at $2.2 billion, or $0.37 per share, while its non-GAAP net income stood at $2.5 billion, or $0.42 per share.

Following the announcement of the third-quarter financial results, Cisco stock fell from $26.74, the closing price on May 12, to $21.13, the closing price on July 2 and the lowest closing price year-to-date. After this, the stock saw a brief rally, which was halted on July 16. The stock has seen another short rally after this, but is finding difficult to break through the $24 mark. The stock is facing strong resistance at $23.79. It has strong support at $22.85.

On July 16, Cisco announced the completion of its acquisition of privately-held CoreOptics Inc. CoreOptics will allow Cisco to equip service provider customers with highly advanced 100 Gigabits per second transmission technology to scale their networks.

Cisco will report its fourth-quarter financial results on August 11. Analysts expect the company to report fourth-quarter revenue of around $10.86 billion. For the same period last year, the company had reported revenue of $8.54 billion. For the first quarter, analysts expect the company to report revenue of $10.91 billion. Meanwhile, analysts expect fourth-quarter EPS of $0.42. For the same period last year, Cisco had reported EPS of $0.31.

Currently, analysts have a consensus rating of Outperform on Cisco. The stock has 25 Buy, 8 Outperform, 7 Hold and 1 Sell rating, at the moment.

The Cisco stock is currently trading above its 10, 20 and 50 day moving averages, which shows that investors are bullish about the stock ahead of the announcement of the fourth-quarter financial results in August.

San Jose, California-based, Cisco is designer, manufacturer and seller of Internet protocol (IP)-based networking and other products.

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