Cisco Systems (CSCO) is expected to report quarterly earnings of $0.98 per share, a 7.7% increase from last year. Revenue is forecasted to be $14.78 billion, up 6.8% year-over-year. Analysts revised EPS estimates down by 0.2% over the past 30 days, indicating a reassessment of initial projections.

Earnings estimate revisions are crucial in predicting investor reactions to a company’s stock ahead of earnings disclosure. Studies show a strong correlation between earnings estimate trends and short-term stock performance. Examining analysts’ projections for key metrics provides deeper insight into a company’s potential performance.

Analysts predict Cisco’s ‘Revenue- Product- Networking’ to reach $7.34 billion, a year-over-year change of +8.7%. ‘Revenue- Product- Observability’ is estimated at $288.48 million, up +11.8%. ‘Revenue- Services’ is projected to be $3.80 billion, a +2% change. ‘Revenue- Product- Security’ is expected to be $2.24 billion, up +11%.

Additional estimates for Cisco include ‘Revenue- Product’ at $10.95 billion, +8.3% change, and ‘Revenue- Product- Collaboration’ at $1.09 billion, +0.2% change. ‘Non-Gaap Gross Margin- Service’ is forecasted to be $2.69 billion, compared to $2.62 billion last year. ‘Non-Gaap Gross Margin- Product’ is estimated at $7.38 billion, up from $6.97 billion.

In the past month, Cisco shares returned +1.5% compared to the Zacks S&P 500 composite’s -0.2%. With a Zacks Rank #3 (Hold), CSCO is expected to align with the overall market performance. For potential stock recommendations with money-doubling potential, check out Zacks’ top picks curated by their experts.

Read more at Nasdaq: Seeking Clues to Cisco (CSCO) Q1 Earnings? A Peek Into Wall Street Projections for Key Metrics