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Cisco (CSCO) is scheduled to report results of its fiscal first quarter after the market closes on November 13 with a conference call scheduled for 4:30 pm ET. What to watch for:

GUIDANCE: Along with its last report, Cisco guided for Q1 adjusted earnings per share of 86c-88c on revenue of $13.65B-$13.85B. At the time, analysts were expecting the company to report Q1 EPS of 85c on revenue of $13.71B, but those figures have since risen to 87c and $13.77B, respectively.

Additionally, Cisco in its last report announced a restructuring plan, estimating that it would recognize pre-tax charges of up to $1B consisting of severance and other one-time termination benefits, and other costs. Cisco expects to recognize approximately $700M to $800M of these charges in Q1 of fiscal 2025 with the remaining amount expected to be recognized during the rest of the fiscal year, the company said at the time. In addition, Cisco said the restructuring plan was expected to impact approximately 7% of its global workforce.

JPMORGAN UPGRADE: Earlier this week, JPMorgan upgraded Cisco to Overweight from Neutral with a price target of $66, up from $55. The firm sees "further headroom for upside in the medium term" despite the recent rally in the shares. It sees earnings upgrades for Cisco from the recovery cycle in enterprise networking demand, which JPMorgan says is still in the early stages as evidence from recent earnings reports of peer companies. The stock offers "modest room for upside" to the valuation multiple, particularly during a period with ramping demand momentum, the analyst tells investors in a research note. JPMorgan is mindful that Cisco's quarterly results "can be choppy in the early stages of a recovery" and is more focused on the opportunity for medium-term upsides from the evidence of the cyclical recovery in enterprise networking.

CITI UPGRADE: Last month, Citi upgraded Cisco to Buy from Neutral with a price target of $62, up from $52. The firm expects the company to benefit from an expanding ethernet artificial intelligence total addressable market and a narrowing valuation gap versus peers. While AI is currently a small piece of Cisco's business, Citi sees the potential for a stronger contribution, the analyst told investors in a research note. The firm noted at the time that it is now incrementally more constructive on the group and expects continued investor rotation out of semis and hardware into networking equipment.

TIGRESS RAISES PT: Also in October, Tigress Financial analyst Ivan Feinseth raised the firm's price target on Cisco to $78 from $76 and maintained a Buy rating on the shares. The company will continue to benefit from the increasing demand for smart artificial intelligence-driven high-speed network bandwidth and security, the analyst told investors in a research note. The firm added that Cisco's ongoing business optimization and transition to its subscription-driven revenue model will drive an increasing acceleration in long-term shareholder value creation.

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