If you know anything about network infrastructure, you know Cisco (NASDAQ:CSCO). The networking giant reports earnings Tuesday night, and we're here to plug you into the pulse of the market.

What analysts say:

  • Buy, sell, or waffle? Thirty-five analyst firms follow the networking titan. Twenty-four of them have a "buy" rating on the stock, and the other 11 a "hold," with nary a sell recommendation in sight. In our own Motley Fool CAPS investor intelligence system, it's a perennial four-star stock based on more than 2,800 player ratings.
  • Revenues. Management guidance point to an $8.7 billion to $8.8 billion range, and the analysts followed in lockstep. The average forecast calls for $8.76 billion, or 19.7% above the year-ago haul.
  • Earnings. Wall Street says $0.33 per share, up from $0.29 a year ago.

What management says:
CEO John Chambers virtually basked in the glory of Cisco's results last time around, explaining that the success rests on disciplined execution of plans made for the long term.

"It is this unique ability to balance between strategy and innovation that has positioned Cisco to take advantage of key emerging business and IT trends such as the rise of video on the network," Chambers said. "As the network becomes the platform, we are seeing more and more signs that all forms of IT and communication are moving into the network and increasing the total available market to Cisco."

What management does:
Margins are slowly slipping downward, though the cash flow take looks healthy indeed. Perhaps more important, and certainly more encouraging, is the accelerating revenue growth as the factors Chambers mentioned above come into play -- particularly the increasing demand for bandwidth-hungry online video.

Margins

10/2005

1/2006

4/2006

7/2006

10/2006

1/2007

Gross

67.5%

67.7%

67.3%

66.4%

65.5%

64.6%

Operating

29.9%

29.9%

29.4%

28.8%

28.2%

27.8%

Net

22.1%

21.5%

20.6%

19.6%

19.7%

20.3%

FCF/Revenue

26.6%

26.2%

26.6%

25%

26.6%

27%

YOY Growth

10/2005

1/2006

4/2006

7/2006

10/2006

1/2007

Revenue

10.8%

10%

12.2%

14.9%

18.7%

23.1%

Earnings

6.2%

3.6%

-0.1%

-2.8%

5.7%

16%
All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ended in the named months.

One Fool says:
I can't help but get excited about Cisco -- it's a first-class operation with great management and a stranglehold on the data networking world. Try as I might, I have a hard time coming up with a downbeat scenario for this half-ton gorilla. Unfortunately for me, I just can't stop talking about it, so our Foolish trading rules are keeping this stock out of my portfolio.

Cisco's core market is big enough to support a couple of smaller players as well, such as a resurgent Nortel Networks (NYSE:NT) or Avaya (NYSE:AV). But there's just no doubt who's the leader of this pack, and management is using Cisco's unique market position to work itself into new sectors wherever the growth opportunities may lie.

Cisco hasn't missed an analyst target since July 2001, and tends to outdo expectations by a penny or two. There may be a few gritty markets these days, like semiconductors and cell phones, but networking ain't one of 'em. In other words, the gravy train stays on track.

Fool on:

•  Before the Call: Cisco Sings

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Fool contributor Anders Bylund holds no position in any of the companies discussed here, dangit. You can check out Anders' holdings if you like, and Foolish disclosure never disappoints.