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Q3 Preview: Slumping Cisco (CSCO) May Have One More Trick as 4G, Mobile Video Set to Expand

Posted
5/11/2011 2:55:00 PM
By: StreetInsider.com
Referenced Stocks:ALU;CSCO

Cisco (Nasdaq: CSCO) is trading lower Wednesday ahead of the company's third-quarter earnings release, slated for after the market close. Shares are down 0.3 percent to $17.74 at last check.

Cisco is expected to report EPS of $0.37 on revs of $10.86 billion. Last quarter, the San Jose, CA-based tech giant reported EPS of $0.37 on revs of $10.4 billion. Looking back at the third quarter of last year, Cisco produced EPS of $0.42, ex-items, on revs of $10.4 billion.

Shares fell about 18 percent through the quarter and are up 1.8 percent since.

Cisco stock is trading at a P/E of 10.2x FY12 EPS estimates, compared with 20.3x at Juniper Networks, Inc. (Nasdaq: JNPR) and 12.9x for Alcatel-Lucent ( ALU ).

Data from Bloomberg has 24 analysts with a Buy on Cisco, 21 with a Hold, and two suggesting to Sell. The analyst price target average is $23, with a high of $29 and low of $17.50. Shares have traded in a range of $26.8 - $16.52 over the last 52-weeks.

Analyst Summary

Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results within seconds of the release.