Cisco to release Q3 earnings on May 15; analysts expect lower EPS and revenue amid focus on key business segments, acquisitions, and future outlook.

Cisco Systems Inc. (NASDAQ: CSCO), a global leader in networking and communication equipment, will announce its fiscal third-quarter earnings results on May 15, 2024, following the close of market trading.

As a bellwether for the technology industry, Cisco’s financial performance and outlook are closely watched by investors and analysts alike, as they provide valuable insights into broader sector trends and the company’s strategic direction.

Analysts Expect Cisco to Report $0.70 EPS in Q3, Lower than Previous Year’s Equivalent Quarter

Market analysts have tempered their expectations for Cisco’s third-quarter results. The consensus earnings per share (EPS) forecast is $0.70, a significant decline from the $0.88 reported in the same quarter last year.

Revenue is also projected to experience a downturn, with analysts anticipating a 13.4% year-over-year decrease to $12.62 billion. Recent adjustments to these estimates have further revised the EPS down by 1.5% to $0.83 and revenue expectations to $12.47 billion, representing a 14.4% decline compared to the previous year.

What to Look Out for with Cisco’s Q3 Earnings

As Cisco navigates an evolving technological landscape, investors and analysts will closely monitor several key aspects of the company’s performance.

One crucial area of interest is Cisco’s product revenue, particularly in emerging segments such as security, where the company has made strategic acquisitions to bolster its capabilities in cloud-native networking. Additionally, market observers will keenly await Cisco’s guidance for the fiscal year 2025, seeking insights into the company’s expectations for recovery in its core business segments and overall strategic direction.

Operational efficiency and gross margins will also be scrutinized, as they serve as critical indicators of Cisco’s ability to manage costs effectively while pursuing expansion and acquisition strategies.

Analysts have highlighted the company’s “stabilizing core business trends,” with particular attention on the performance of its networking segment and the impact of the recent Splunk acquisition.

Furthermore, Cisco’s recent strategic acquisitions, such as Isovalent, aim to strengthen its secure networking capabilities across public clouds. These moves are crucial to the company’s future growth and market position, and investors will be closely watching for any updates on the integration and performance of these acquired assets.

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