Cisco (CSCO) Looks To Connect With Investors In Q1
Cisco Systems (NASDAQ: CSCO) is trading slightly higher before the company reports their first quarter 2010 earnings results after the market closes today, November 4, 2009. The stock is up about $0.26, or 1.13%, to $23.18.
Cisco reported Q409 EPS of $0.31, topping the Street by 2c, and revs of $8.5 billion, missing just slightly. For Q109, Cisco posted an EPS of $0.42 and revs of $10.3 billion. It should be noted that Cisco expected to see Q4 sales down after they reported their Q309 earnings in May, 2009.
For Q110, Cisco is expected to post an EPS of $0.31 on revenues of $8.74 billion.
Cisco has been up about 4.4% since their fourth quarter earnings release and up about 43% since the onset of 2009. In comparison, the Technology sector has been up about 30% since the start of 2009.
Data from Bloomberg shows that 29 analysts have a Buy rating, 12 have a Hold, and 1 have a Sell rating on Cisco Systems. The analyst consensus price target is $25.83.
Wells Fargo maintains their Outperform rating and a price range of $26 - $28. The firm also sees revs of $8.75 billion and an EPS of $0.31. The firm believes that Cisco benefited from strong fiscal year-end spending as well as an improvement in global networking demand. Wells sees Q1 Q/Q strength driven by Cisco's Switching and Advanced Technology groups.
Wedbush Morgan raised their price target on Cisco to $25 from $22, maintaining a Neutral rating. Wedbush cites a firm product cycle in the carrier routing space and more aggressive sales and marketing.
Piper Jaffray also increase their price target to $27 from $25, reiterating their Overweight rating. The firm says that they believe the demand for networking gear has picked up more than Cisco's guidance offers. Piper states that the demand increase, along with modest inventory restocking and tight operating expense controls set the stage for better than expected results.
Auriga raised their price target to $23 and reiterated their Hold rating on Cisco. The firm says that fundamentals have bottomed and improvements have occurred in the service provider vertical.
Cisco was upgraded to Outperform from Market Perform at William Blair.
During the fourth quarter, Cisco had replaced GM on the symbolically important Dow Jones Industrial Average. The average tracks 30 industrial stocks and is a gauge of how the industrial sector is performing within the American economy.
Cisco Systems will issue its Q110 results via press release at approximately 4:00 PM (EDT) on November 4, 2009. Stay tuned to StreetInsider.com's Earnings section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
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