It's that time again. Cisco Systems, Inc. (CSCO) is set to drop its first-quarter report card after the closing bell on Wednesday, November 12. For investors, it's a moment to see if the networking giant can keep its recent momentum going.
The consensus on Wall Street is looking for a solid report. Analysts are forecasting earnings of 98 cents per share, which would be up nicely from the 91 cents per share Cisco reported in the same quarter last year. On the top line, the expectation is for revenue to hit $14.78 billion, compared to $13.84 billion a year ago. If those numbers hold, it's a clear sign of growth. And Cisco has a habit of delivering on revenue, having beaten analyst estimates in eight of its last ten quarters, including the most recent one.
So, what are the smartest people on the Street—or at least, the most statistically accurate ones—thinking ahead of the print? Let's take a look. It's always interesting to see which analysts have recently tweaked their models and why.
Over at Wells Fargo, analyst Aaron Rakers (who boasts an 86% accuracy rate) is staying bullish. He maintained his Overweight rating and, back in mid-August, bumped his price target up from $75 to $83.
Amit Daryanani from Evercore ISI Group (82% accuracy) is a bit more measured. He kept an In-Line rating but did raise his price target from $72 to $74 around the same time.
Barclays analyst Tim Long (72% accuracy) also took a step up, maintaining an Equal-Weight rating while increasing his target from $66 to $71.
On the more optimistic end, Rosenblatt's Mike Genovese (81% accuracy) has a Buy rating and a price target of $87. Similarly, Tal Liani at B of A Securities (78% accuracy) maintained a Buy and raised his target from $76 to $85.
The general theme here? A series of upward price target revisions from a diverse group of analysts, all filed in mid-August. It paints a picture of cautious optimism, with most seeing room for the stock to run higher from recent levels.
Speaking of recent levels, Cisco shares dipped slightly, closing down 0.5% at $71.71 on Tuesday. That's often just the quiet before the earnings storm—a bit of positioning and profit-taking ahead of the big news. Now, all eyes turn to Wednesday afternoon to see if the company's results can justify the analysts' faith and give the stock a fresh catalyst.
