Cisco on the Brink: Is a Resurgence for Old Tech in Sight With Upcoming Earnings?

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S&P 500,Intel Corporation,Cisco Systems Inc

Stocks Analysis by Brian Gilmartin covering: Nasdaq 100, S&P 500, Intel Corporation, Cisco Systems Inc. Read Brian Gilmartin's latest article on Investing.com

) reports its fiscal Q1 2025 financial results after the closing bell on Wednesday, November 13 2024, with analyst consensus estimates expecting the following:EPS: $0.87 per share, for -22% y-o-y growth

In terms of “forward, expected growth” here’s how the next 3 fiscal years annual estimates look for the 1990’s telco networking stalwart:For a stock trading at 15x – 16x EPS, that is expected to “average” 3% revenue growth and 4% EPS growth over the next 3 years, the most compelling investment case you can make for the stock is that it’s NOT a mega-cap 7 name, and there are such low expectations around Cisco, it becomes a “it’s so bad, it’s good” scenario.

The numerous smaller acquisitions never worked, or seemed to work in terms of adding accretive revenue growth, and in fact Cisco’s acquisition strategy seemed to do nothing but dilute shareholders for the last 25 years.) acquisition looks more interesting, but in fiscal Q4 2024 , Splunk was below the midpoint of the revenue guidance which may not be a good sign this early into the integration.

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