Cisco earnings look-ahead: Improved enterprise spending to support revenue growth
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Networking giant Cisco (NASDAQ:CSCO) is set to report its fourth-quarter results on Wednesday after market close, with investors closely looking at order trends, and seeking updates to the company's full-year 2024 outlook.
Wall Street analysts expect Cisco to post earnings per share of $1.06 on revenues of $15.05 billion, which would mark a jump of nearly 15% year-over-year.
While analysts expect the network equipment maker to suffer from weak cloud service provider sales, they expect it to be offset by improving enterprise spending, supporting revenue growth. 
The company is expected to outperform its peers, including Arista Networks (ANET) and Juniper Networks (JNPR), on the back of strong enterprise demand. 
Cisco shares have surged over 11% YTD. 
Investors will be watching for any updates to the company's 2024 guidance, seeing if the company can stick to its previously provided full-year outlook.
In June, the company unveiled two new AI-focused networking chips to compete with existing rival offerings. 
Seeking Alpha contributor Tradevestor said, "The company is undergoing a product-based transformation and has seen increasing expectations for its Q4 earnings."
Fellow contributor Dair Sansyzbayev added, "The company's capital allocation approach is very shareholder-friendly, with massive buybacks and a strong track record of dividend growth." 
Cisco has seen substantial changes to its estimates over the last three months. Earnings per share forecasts have been revised upwards 19 time, while revenue estimates have been revised up 13 times vs. 4 downward revisions. 
Seeking Alpha analysts at large consider Cisco a Buy. This compares with average Wall Street rating of Buy and SA Quant rating of Hold.