Cisco Earnings, Revenue Edge Views; Dividend Hike Light?

(CSCO) is getting weaker by the somewhat negative sentiment (2.20 on a 5-point scale) that sell-side analysts have provided concerning it. Brokerage firms on the average advocate the company shares as Buy.

Cisco (CSCO) is set to report second quarter fiscal 2017 earnings results after the closing bell today. (NASDAQ:CSCO) will release its earnings at about 7%.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Tim Long has a yearly average return of 9.3% and a 62% success rate. The results exceeded Wall Street expectations beating the analyst consensus estimate by $0.01. Sequentially sales are estimated to fell by -6.48% from Q1’s $12.35B.

For the three months that ended January 28, Cisco said it earned 47 cents a share, on $11.6 billion in sales. On the other hand, in the July 2017 quarter the company recorded a net $12.64B revenue with earnings per share of $0.63. The consensus 12-month price target from analysts covering the stock is $33.26.

The price-earnings ratio (P/E Ratio) is 15.42. It has been assigned a low target price of $25 and a high target price of $38. The company has PEG ratio of 1.67 and price to cash ratio of 2.26.

Cisco Systems, Inc. has 52-Week high of $32.31 and 52-Week Low of $25.65. The stock is now trading with a distance of 20-Day Simple Moving Average (SMA20) of 3.96%. The stock hit its 52-Week High on Feb 13, 2017 and 52-Week Low on Feb 16, 2016.

While looking at the Stock’s Performance, Cisco Systems, Inc. now shows a Weekly Performance of 2.73%, where Monthly Performance is 7.45%, Quarterly performance is 3.91%, 6 Months performance is 5.34% and yearly performance percentage is 29.49%.

3 analysts rated the stock of Philip Morris International, Inc. Somerville Kurt F now owns 164,940 shares of the network equipment provider’s stock worth $4,733,000 after buying an additional 1,190 shares in the last quarter. Cisco Systems has a 12-month low of $25.65 and a 12-month high of $32.84. This is the current Zacks consensus EPS which was calculated at the time of writing. The Monthly and Yearly performances are 6.42 percent and 31.85 percent respectively. While 3 stands at overweight and none of analyst gave Underweight and 1 out of pool consider it as Sell for current month. The stock has moved up across its 50-day moving average of $30.67. The stock was trading on above-average volume. The stock traded with the volume of 26.36 Million shares in the last trading session.

Indicating how profitable this stock is relative to its assets, the ROA value is observed at 8.90%. The waffling reaction may stem from Cisco providing an improved but still tepid outlook for the third quarter, with revenues likely to range from flat to negative 2 percent and adjusted earnings coming in at 57 to 59 cents a share, the latter range bracketing analysts’ 58-cent forecast. Shares have added 1.06% to $32.31.

EPS growth for this year is 20.90% and EPS growth for next year is expected to reach at 4.89%.

Given its history, the average earnings announcement surprise was 6.94 percent over the past four quarters.