What to Expect When Cisco Reports After the Close

By Chris Lange Updated Jan 31, 12:39AM EST · Published Feb 13, 11:20AM EST

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What to Expect When Cisco Reports After the Close — © raisbeckfoto / Getty Images

Cisco Systems Inc. (NASDAQ: CSCO | CSCO Price Prediction) is scheduled to report its fiscal second-quarter financial results after the markets close on Wednesday. Thomson Reuters consensus estimates are calling for $0.72 in earnings per share (EPS) and $12.41 billion in revenue. The same period of last year reportedly had $0.63 in EPS and $11.89 billion in revenue.

In December, Cisco announced that it would be making a key acquisition. This deal is expected to close in the third quarter of Cisco’s fiscal 2019, and it is subject to customary closing conditions and required regulatory approvals.

Cisco is acquiring the privately held Luxtera, a semiconductor company that uses silicon photonics to build integrated optics capabilities for webscale and enterprise data centers, service provider market segments and other customers. Luxtera’s technology, design and manufacturing innovation significantly improve chip scale and performance while lowering costs.

Cisco plans to incorporate Luxtera’s technology across its intent-based networking portfolio, spanning enterprise, data center and service provider markets.

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Under the terms of the agreement, Cisco will pay $660 million in cash and assumed equity awards for the acquisition of Luxtera.

Excluding Wednesday’s move, Cisco had outperformed the broad markets, with its stock up about 10.5% year to date. Over the past 52 weeks, the stock was up 21%.

A few analysts weighed in on Cisco ahead of the report:

Morgan Stanley rates it Equal Weight with a $49 price target.
Robert Baird has a Buy rating with a $53 price target.
Credit Suisse has a Hold rating and a $44 price target.
Argus has a Buy rating with a $55 price target.
Nomura has a Neutral rating and a $50 target.
Wolfe Research has an Outperform rating.

Shares of Cisco were last seen down about 1% at $47.40 on Wednesday, in a 52-week range of $40.19 to $49.47. The consensus price target is $52.64.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.