Seeking Clues to Cisco (CSCO) Q1 Earnings? A Peek Into Wall Street Projections for Key Metrics

Core Insights - Cisco Systems (CSCO) is expected to report quarterly earnings of $0.98 per share, a 7.7% increase year-over-year, with revenues projected at $14.78 billion, reflecting a 6.8% year-over-year growth [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 0.2% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts estimate 'Revenue- Product- Networking' to reach $7.34 billion, an increase of 8.7% year-over-year [5] - 'Revenue- Product- Observability' is projected at $288.48 million, indicating an 11.8% increase from the previous year [5] - 'Revenue- Services' is expected to be $3.80 billion, reflecting a 2% year-over-year change [5] - 'Revenue- Product- Security' is forecasted at $2.24 billion, an 11% increase from the year-ago quarter [6] - The overall 'Revenue- Product' is anticipated to reach $10.95 billion, showing an 8.3% year-over-year growth [6] - 'Revenue- Product- Collaboration' is estimated at $1.09 billion, with a minimal increase of 0.2% year-over-year [6] Gross Margin Estimates - Analysts predict 'Non-GAAP Gross Margin- Service' to be $2.69 billion, compared to $2.62 billion in the same quarter last year [7] - The average estimate for 'Non-GAAP Gross Margin- Product' is $7.38 billion, up from $6.97 billion year-over-year [7] Stock Performance - Over the past month, Cisco shares have gained 1.5%, while the Zacks S&P 500 composite has decreased by 0.2% [7] - Cisco holds a Zacks Rank of 3 (Hold), suggesting its performance will likely align with the overall market in the near term [7]