What are your expectations for this report. You have a buy rating on the stock, $76 price target. That's about a 5% increase from where it's trading this morning.What does that say to you about uh what should that say about this earnings report and your expectations. >> We're in the middle of an infrastructure cycle. You've seen the results of Arista few days ago.They raised the guidance. You've seen the orders of Sienna. Same thing.Cisco last quarter their orders from cloud doubled 600 million from 350 the ...

Core Insights - Cisco Systems Inc is expected to report fiscal fourth-quarter earnings on August 13, 2025, with analysts predicting earnings of 98 cents per share and revenue of $14.62 billion, reflecting a 13% increase in adjusted earnings and a 7% rise in sales year-over-year [2] - The company's Q3 results exceeded expectations, driven by strong AI-related demand, which positively impacted core earnings and full-year targets [2] - Cisco's stock has historically outperformed after earnings announcements, with a 63% chance of positive returns and a median one-day gain of 4.3% [4] Financial Performance - Cisco's market capitalization stands at $281 billion, with total revenue over the past twelve months reaching $56 billion [2] - The company reported $12 billion in operating profits and a net income of $9.8 billion [2] Historical Earnings Trends - Over the past five years, Cisco has recorded 19 earnings data points, with 12 positive and 7 negative one-day returns, indicating a 63% likelihood of positive returns [4] - This percentage increases to 67% when considering data from the last three years [4] - The median of positive returns is 4.3%, while the median of negative returns is -2.7% [4] Correlation Analysis - Analyzing the correlation between short-term and medium-term returns can provide a less risky trading strategy, particularly if a high correlation exists between 1D and 5D returns [5] - Historical data suggests that peer performance can influence Cisco's post-earnings reactions, with pricing potentially starting before earnings announcements [6]

Core Viewpoint - The article emphasizes the importance of conducting personal due diligence before making investment decisions, highlighting that past performance does not guarantee future results [2][3]. Group 1 - The content is based on personal thoughts and research, and it is not intended as financial or investment advice [2][3]. - There is no business relationship with any company mentioned in the article, ensuring an unbiased perspective [1][2]. - The article acknowledges the potential for errors or misprints in the information provided, stressing the need for accuracy [2][3]. Group 2 - The article clarifies that the authors are not licensed securities dealers or investment advisers, which may affect the reliability of the opinions expressed [3]. - It is noted that all investments carry risks, including the possibility of losing the entire investment [2][3]. - The views expressed may not reflect those of the platform as a whole, indicating a diversity of opinions among contributors [3].

Company Overview - Trinity Asset Management was founded by Brian Gilmartin in May 1995, focusing on providing attention and service to individual investors and institutions that were underserved by larger firms [1] - Brian Gilmartin has a background as a fixed-income/credit analyst and has experience working with a Chicago broker-dealer and Stein Roe & Farnham before establishing his own firm [1] Educational Background - Brian Gilmartin holds a BSBA in Finance from Xavier University, Cincinnati, Ohio, obtained in 1982, and an MBA in Finance from Loyola University, Chicago, completed in January 1985 [1] - He earned the CFA designation in 1994 [1] Professional Experience - Brian Gilmartin has contributed to financial writing for various platforms, including TheStreet.com from 2000 to 2012 and WallStreet AllStars from August 2011 to Spring 2012 [1] - He has also written for Minyanville.com and has been quoted in numerous publications, including the Wall Street Journal [1]

Core Insights - Super Micro Computer (SMCI) and Cisco Systems (CSCO) are prominent players in the server market, focusing on designs, development, and manufacturing for data centers, cloud computing, AI, and edge computing workloads [1][2] Industry Overview - The global server market is projected to grow at a CAGR of 9.8% from 2024 to 2030, driven by increasing demands from AI and high-performance computing (HPC) workloads [2] Company Analysis: SMCI - SMCI's server and storage system revenues grew 10% year-over-year in Q4 FY25, reaching $5.62 billion, which constitutes 97.6% of its total revenue [4] - Over 70% of SMCI's revenues in Q4 FY25 were derived from AI-focused systems, indicating its strong position in AI infrastructure [5] - Recent product launches, including Data Center Building Block Solutions and petascale storage systems, are expected to enhance SMCI's market position [6] - SMCI faces near-term challenges such as delayed purchasing decisions and margin contraction due to price competition [7] - The Zacks Consensus Estimate for SMCI's Q1 FY26 earnings is 47 cents per share, reflecting a year-over-year decline of 37.3% [8] Company Analysis: CSCO - CSCO's server offerings include a range of products under the Cisco Unified Computing System (UCS), which integrates networking and server technology [11] - The company has received over $1 billion in AI infrastructure orders year-to-date, with $600 million in Q3 FY25 alone, indicating strong demand [14] - The Zacks Consensus Estimate for CSCO's fiscal 2025 revenues is $56.59 billion, representing a year-over-year increase of 5.2% [15] Financial Performance - Year-to-date, SMCI shares have increased by 48.3%, while CSCO shares have risen by 19.4% [17] - SMCI has a forward Price to Sales ratio of 4.72X, compared to CSCO's 0.86X, making CSCO's valuation more attractive [18] Conclusion - Both SMCI and CSCO are benefiting from the growth in AI and HPC, but SMCI is currently facing challenges that may impact its near-term performance. CSCO's lower valuation and stronger order growth position it as a more compelling investment opportunity [19]

Core Viewpoint - Cisco Systems is set to report its fiscal fourth quarter earnings, with expectations of strong performance driven by its AI initiatives and partnerships, particularly with Nvidia [1][6][16] Group 1: Earnings Expectations - Cisco's Q4 sales are projected to increase by 7% to $14.6 billion compared to $13.64 billion in the same quarter last year [6] - Q4 earnings per share (EPS) are expected to rise by 11% to $0.97, up from $0.87 in the prior period [6] - For fiscal 2025, total sales are anticipated to grow by 5% to $56.59 billion, with annual EPS expected to increase over 1% to $3.79 [7] Group 2: AI Initiatives - Cisco's unified silicon architecture, "Silicon One," is designed to support high-performance networking for AI and machine learning workloads [2] - The company offers a range of AI solutions, including AI infrastructure, AgenticOps for IT automation, and AI-enhanced Webex collaboration tools [9][10][11] - Cisco's partnership with Nvidia includes being the only third-party silicon vendor in Nvidia's Spectrum-X Ethernet platform, the first Ethernet networking platform for AI [2] Group 3: Stock Performance and Valuation - Cisco's stock has increased nearly 60% over the past year, reaching a 52-week high of $72 per share [3] - The stock trades at 17.9 times forward earnings, which is a 26% discount compared to the S&P 500's 24.4 times forward earnings multiple [13] - Cisco has exceeded earnings expectations for 31 consecutive quarters, with an average earnings surprise of 3.94% over the last four quarters [7][8]

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Core Viewpoint - Cisco (CSCO.US) is expected to report strong growth in its Q4 earnings, driven by AI and security initiatives, with projected EPS of $0.97 and revenue of $14.6 billion, reflecting year-over-year increases of 11.5% and 7.1% respectively [1] Group 1: Financial Performance Expectations - Analysts have raised the EPS forecast by 0.2% over the past 30 days, indicating confidence in Cisco's recovery after a decline in revenue during FY2024 [1] - Cisco's stock has risen 23% year-to-date, outperforming peers like Dell Technologies (21% increase) and Hewlett Packard Enterprise (1.02% decrease) [1] - For FY2025, Cisco anticipates revenue between $14.5 billion and $14.7 billion for Q4, with non-GAAP EPS expected between $0.96 and $0.98 [1] Group 2: Business Segment Performance - In Q3, Cisco's networking business revenue grew 8% to $7.07 billion, slightly exceeding expectations, while security product revenue surged 54% to $2 billion, bolstered by the $27 billion acquisition of Splunk [2] - The demand for networking products is expected to improve, driven by needs in switches, enterprise routing, large-scale infrastructure, and industrial networking applications [2] - Analysts project that "product-network business revenue" will reach $7.19 billion, a 5.6% increase, while "product-security business revenue" is expected to grow 23.2% to $2.2 billion [3] Group 3: Strategic Initiatives - Cisco's integration of AI into its security platform and the development of intelligent agent capabilities across its product line are key drivers of growth [2] - The launch of the Duo Identity and Access Management (IAM) solution aims to help enterprises combat identity theft, reinforcing Cisco's zero-trust security approach [2] - Cisco's enhanced security solutions, including hybrid mesh firewalls and universal zero-trust network access solutions, are designed to simplify policy management and improve visibility for businesses [2]

Core Viewpoint - Cisco is expected to report a strong fourth-quarter performance with an EPS of $0.97, reflecting an 11.5% year-over-year increase, and revenue projected at $14.6 billion, a 7.1% increase from the previous year [1] Financial Performance - Cisco's stock has risen 23% year-to-date, outperforming peers like Dell Technologies and Hewlett Packard Enterprise [1] - The company anticipates slightly higher earnings and revenue for fiscal year 2025, with Q4 revenue expected between $14.5 billion and $14.7 billion [1] - In Q3, Cisco reported a 9% profit increase, driven by over $600 million in AI infrastructure orders, leading to an 11% revenue growth to $14.1 billion [1] Business Segments - Q3 network business revenue grew 8% to $7.07 billion, slightly above expectations, while security product revenue surged 54% to $2 billion, aided by the acquisition of Splunk [2] - The expected growth in Q4 is driven by improved demand for network products, particularly in switches, enterprise routing, and industrial network applications [2] - Analysts project "product-network business revenue" to reach $7.19 billion, a 5.6% increase, and "product-security business revenue" to be $2.2 billion, a 23.2% increase [3] Strategic Initiatives - Cisco's integration of AI into its security platform and the development of intelligent agent capabilities across its product line are key growth drivers [2] - The launch of Duo Identity and Access Management (IAM) solutions enhances Cisco's zero-trust security approach, addressing identity theft threats [2] - Cisco's enhanced security solutions, including hybrid mesh firewalls, simplify policy management and support secure business expansion [2]

Core Viewpoint - The article discusses the recent financial performance of a specific company, highlighting significant revenue growth and strategic initiatives that may impact future profitability [1]. Financial Performance - The company reported a revenue increase of 25% year-over-year, reaching $2.5 billion in the last quarter [1]. - Net income rose to $300 million, reflecting a 15% increase compared to the previous year [1]. Strategic Initiatives - The company has launched a new product line aimed at expanding its market share in the technology sector [1]. - Investments in research and development have increased by 20%, indicating a commitment to innovation and long-term growth [1]. Market Position - The company has gained a competitive edge, now holding a 15% market share in its primary industry [1]. - Analysts predict that continued growth in the sector could lead to further increases in revenue and profitability [1].