Cisco Systems Inc. (NASDAQ:CSCO): Will Announce 3Q14 Earnings Today


Dallas, Texas 05/014/2014 (FINANCIALSTRENDS) –Cisco Systems, Inc. (NASDAQ:CSCO) is set to announce its 3Q14 earning today, on May 14, 2014 at 04:00 p.m. EDT following which it will host a conference call at 04:30 p.m. EDT. Dan Caplinger, Director of Investment Planning at Motley Fool, questions whether Cisco will be able to sustain its leadership role in networks given the ongoing competition from Oracle Corporation (NYSE:ORCL) and International Business Machines Corp. (NYSE:IBM) which have been aggressive on capturing enterprise customers. So far, Cisco has managed to post relatively stable profits despite declines in its sales over past couple of quarters.

Market Expectations:

Analysts polled by Thomson Reuters predict Cisco Systems, Inc. (NASDAQ:CSCO) to report per share profit of $0.48, excluding items for 3Q14 as compared to $0.51 in 3Q13. The analysts also expect around 7%, year over year, decline in its revenue which could amount to $11.35 billion during 3Q14. However, analysts expects sequential revenue growth of about 2% for the current quarter and predicts revenue to be around $11.79 billion for 4Q14 with a profit of $0.51 per share, excluding items against $0.52 per share reported during 4Q13.

Transition is Key to Growth:

Cisco Systems, Inc. (NASDAQ:CSCO) has realized to go beyond its usual businesses to reaccelerate its revenue growth and its plans to use emerging areas of the company like data center, mobile and security. The company also intends to spend around $1 billion on its Cisco Cloud Services concept and expects that these emerging areas will help Cisco offset falling growth in its core networking business, which still comprise significant portion of its revenue.

Cisco’s 2Q14 earnings highlights indicated sound improvement in emerging markets and double digit growth in its enterprise and commercial business. Even 2Q14 revenues were comparatively better than Cisco’s guidance.

Stock Update:

Yesterday, Cisco’s stock closed at $22.86, 1.42% below its previous closing.