Cisco Q4 earnings preview: Will recent demand erosion lead to another top line miss?
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Cisco (NASDAQ:CSCO) is scheduled to announce FQ4 earnings results on Wednesday, August 17th, after market close.
During the quarter, the California-based networking giant exited its Russia business and encountered issues amid lockdowns in China. Still, CEO Chuck Robbins indicated he remains âfairly optimisticâ on China in interviews ahead of the quarterly report.
The company has also dealt with cyberattacks in recent weeks and Wall Street remains skeptical of the demand environment in Q4. Over the last 3 months, Cisco EPS estimates have seen 0 upward revisions and 22 downward. Revenue estimates have seen 0 upward revisions and 20 downward.
The current consensus EPS estimate is $0.82 (-2.4% Y/Y) and revenue estimate is $12.78B (-2.7% Y/Y). Cisco's Q3 results and guidance were also weaker than anticipated, triggering negative reaction from Wall Street to the networking equipment company. This was just the second miss on the top line in the past two years, with the last miss in Q1.
Citi most recently warned that Cisco may face more headwinds than peers like Arista Networks (ANET) and Juniper Networks (JNPR) amid supply chain issues and accelerating market share losses. Cisco shares have plunged nearly -26% YTD; here is a look at its performance against peers:

Bloomberg has also cautioned against crimped tech spending among retail consumers and businesses in the current economic environment. It estimates product revenues will come to $9.41B, with secure, agile networks revenue making up $5.85B. However, Mott Capital Management said in late July that Cisco may move "sharply higher."
Over the last 2 years, CSCO has beaten EPS estimates 100% of the time and has beaten revenue estimates 75% of the time.
Over the last 3 months, EPS estimates have seen 0 upward revisions and 22 downward. Revenue estimates have seen 0 upward revisions and 20 downward.