Core Viewpoint - Cisco Systems Inc. is expected to report earnings with a gain of $0.98/share on $14.61 billion in revenue, while the Whisper number suggests a gain of $1.01/share, indicating market anticipation for strong performance [5]. Group 1: Earnings and Financial Performance - The company has shown steady earnings growth over the past few years, with earnings of $3.21 in 2020, $3.22 in 2021, $3.36 in 2022, and $3.89 in 2023. However, earnings are projected to decline to $3.73 in 2024, with a recovery expected to $3.79 in 2025 and $4.01 in 2026 [6]. - Cisco's current price-to-earnings ratio stands at 19, which is 0.8 times that of the S&P 500, suggesting a relatively attractive valuation compared to the broader market [6]. Group 2: Stock Performance and Technical Analysis - The stock recently reached a multi-decade high and is trading above its 21, 50, and 200-day moving averages, indicating strong technical performance. Investors are keenly watching for potential price movements following the earnings report [7]. Group 3: Company Background and Offerings - Cisco Systems, founded in 1984, has evolved into a leader in digital networking and communications technology, providing a wide range of products and services that form the backbone of the modern Internet [8][9]. - The company's offerings include networking hardware, software-defined networking, wireless technologies, security solutions, and collaboration platforms, which support businesses in creating secure and robust networks [10][11]. - Cisco's solutions cater to various sectors, including enterprises, governments, and service providers, with a focus on connectivity, security, and collaboration [12][13].

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and algorithmic analysis [1] Group 1: Investment Strategies - Paul Franke developed a system called "Victory Formation," which focuses on identifying supply/demand imbalances through specific stock price and volume movements [1] - The "Bottom Fishing Club" articles target deep value stocks or those showing significant upward technical momentum reversals [1] - The "Volume Breakout Report" articles discuss stocks that exhibit positive trend changes supported by strong price and volume trading activity [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009, out of over 60,000 portfolios [1] - As of June 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance based on suggestions made over the last decade [1] Group 3: Risk Management - Franke advises investors to implement stop-loss levels of 10% or 20% on individual stock choices and to maintain a diversified portfolio of at least 50 well-positioned stocks to achieve consistent outperformance in the stock market [1]

Investment Recommendation - The firm has a buy rating on Cisco stock with a $76 price target, representing an approximate 5% increase from the current trading price [1][2] - The current price target may be adjusted based on the upcoming earnings report and future expectations [3] - Investors have the option to consider further upside potential or determine if the stock has reached its peak [4] Market Dynamics and Growth Drivers - The industry is experiencing an infrastructure cycle, evidenced by positive results and raised guidance from companies like Arista and Sienna [1] - Cisco's cloud orders doubled last quarter, increasing from $350 million to $600 million, with expectations for continued growth [2] - The infrastructure cycle is expected to drive revenue, profits, and share prices [2] - AI and data growth are key drivers of the infrastructure boom, extending beyond cloud [7] Networking Segment Performance - Networking accounts for approximately 70% of Cisco's product revenues [5] - Order growth in networking has been outpacing revenue growth in recent quarters [6] - Revenue growth in networking is expected to accelerate this quarter, with guidance anticipated to increase in subsequent quarters due to strong historical order growth [6]

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]