Ticonderoga Maintains a 'Buy' on Cisco (CSCO); Q3 Earnings Preview
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Price: $111.68 -1.58%
Rating Summary:
35 Buy, 27 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
35 Buy, 27 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Ticonderoga maintains a 'Buy' on Cisco (NASDAQ: CSCO), PT $28.
Ticonderoga analyst says, "We believe that Cisco could struggle to meet our 3QFY11 revenue projection of $10.79 billion; however, our pro forma EPS estimate of $0.36 appears achievable (the Street is at $0.37) as we believe there could be room for cost savings. Recall, the company's 3QFY11 sales outlook calls for 4-6% Y/Y growth (or revenue of ~$10.78 billion to $10.99 billion) and pro forma EPS of $0.35 to $0.38."
"We believe the combination of continued weakness in public spending, increased competition in the switch market from companies such as Hewlett-Packard (NYSE: HPQ)(NotRated), the situation in Japan, surging material prices and increased instability in the Middle East will likely weigh on Cisco's results."
"Looking into 4QFY11, we are projecting sales of $11.18 billion and pro forma EPS estimate of $0.39, which we believe has a shot of making it into Cisco's outlook range. However, the Street's 4QFY11 estimates appear to be at risk. Recall, Cisco's 4QFY11 revenue outlook calls for growth of 8-11% Y/Y, and we expect this forecast to be revised lower."
For more ratings news on Cisco click here and for the rating history of Cisco click here.
Shares of Cisco closed at $17.56 yesterday.
Ticonderoga analyst says, "We believe that Cisco could struggle to meet our 3QFY11 revenue projection of $10.79 billion; however, our pro forma EPS estimate of $0.36 appears achievable (the Street is at $0.37) as we believe there could be room for cost savings. Recall, the company's 3QFY11 sales outlook calls for 4-6% Y/Y growth (or revenue of ~$10.78 billion to $10.99 billion) and pro forma EPS of $0.35 to $0.38."
"We believe the combination of continued weakness in public spending, increased competition in the switch market from companies such as Hewlett-Packard (NYSE: HPQ)(NotRated), the situation in Japan, surging material prices and increased instability in the Middle East will likely weigh on Cisco's results."
"Looking into 4QFY11, we are projecting sales of $11.18 billion and pro forma EPS estimate of $0.39, which we believe has a shot of making it into Cisco's outlook range. However, the Street's 4QFY11 estimates appear to be at risk. Recall, Cisco's 4QFY11 revenue outlook calls for growth of 8-11% Y/Y, and we expect this forecast to be revised lower."
For more ratings news on Cisco click here and for the rating history of Cisco click here.
Shares of Cisco closed at $17.56 yesterday.
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