Can Cisco Systems Meet These Numbers?

Cisco Systems (Nasdaq: CSCO  ) is expected to report Q2 earnings on Feb. 13. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Cisco Systems's revenues will increase 4.6% and EPS will grow 2.1%.

The average estimate for revenue is $12.06 billion. On the bottom line, the average EPS estimate is $0.48.

Revenue details
Last quarter, Cisco Systems reported revenue of $11.88 billion. GAAP reported sales were 5.5% higher than the prior-year quarter's $11.26 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.48. GAAP EPS of $0.39 for Q1 were 18% higher than the prior-year quarter's $0.33 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 61.0%, 20 basis points worse than the prior-year quarter. Operating margin was 22.9%, 150 basis points better than the prior-year quarter. Net margin was 17.6%, 180 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $48.67 billion. The average EPS estimate is $1.96.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 10,503 members out of 11,019 rating the stock outperform, and 516 members rating it underperform. Among 1,964 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,885 give Cisco Systems a green thumbs-up, and 79 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cisco Systems is outperform, with an average price target of $21.65.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere


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