Cisco Systems (NASDAQ:CSCO) closed at $51.60 on Tuesday, marking a slight uptick of 0.08%. However, this performance fell short of the broader market’s gains, with the S&P 500, Dow, and Nasdaq surging by 1.2%, 1.58%, and 1.16%, respectively. Over the past month, CSCO shares experienced a more significant decline of 4.09%, while the Computer and Technology sector fell by 3.32%, and the S&P 500 recorded losses of 3.58%.
Looking ahead to their financial results, scheduled for release on November 15, 2023, Cisco Systems is optimistic about its earnings per share (EPS), projecting an impressive year-on-year rise of 19.77%. The company also anticipates a quarterly revenue of $14.61 billion, indicating a year-on-year increase of 7.18%.
Consensus estimates are equally positive, with full-year earnings for Cisco Systems expected to reach $4.05 per share, and revenue is projected to reach $57.73 billion. These figures translate to year-on-year growth rates of +4.11% and +1.29%, respectively. It is worth noting that these estimates are often indicative of broader business trends and can influence stock prices.
In summary, while Cisco Systems’ recent stock performance has lagged behind market gains, the company’s projected growth in EPS and revenue offers valuable insights into its current financial position and future potential.
InvestingPro Insights
Considering Cisco Systems’ recent performance, it’s essential to highlight key insights from InvestingPro. Firstly, the company demonstrates high earnings quality, consistently generating free cash flow that exceeds net income, a strong indicator of financial health. Additionally, Cisco has been on an upward trajectory, boasting accelerating revenue growth, which bodes well for prospective investors.
Examining financial metrics, InvestingPro data reveals a market capitalization of $208.89 billion and a price-to-earnings (P/E) ratio of 16.76. The company’s revenue over the last 12 months, as of Q4 2023, stands at $57.0 billion, reflecting a substantial growth of 10.55%. Moreover, the return on assets for the same period stands at 12.88%, underscoring the company’s efficient use of resources.
In addition to these insights, InvestingPro offers over 14 additional tips for those interested in Cisco Systems, providing a comprehensive analysis of the company’s financial health and potential for growth.
