Cisco Systems 3QFY15 Earnings Preview By MKM Partners

Analysts at MKM Partners maintained their Neutral rating on Cisco, as they expect the IT Company to deliver better than expected results.

Cisco Systems is all set to announce its third quarter financial results for fiscal year 2015 on Wednesday May 13 after market closes. Analysts at MKM Partners expects the IT company to post robust results, and reiterated its Neutral rating with $30 stock price target ahead of its 3QFY15 earnings call.

Cisco’s top line growth was led by double digit growth in its main business such as Data center & wireless, Collaboration and Switching.

The analysts believe that the company will report an outstanding performance in the third quarter, reporting somewhat improved revenues against its revenue estimate of $12.09 million. Furthermore, the research firm has backed Cisco to surpass its 53 cents earnings per share by 1 to 3 cents, mainly due to robust operating expenditures controls and effective share buyback.

Moreover, the analysts believe that the information technology firm will maintain its strong run in the next quarter as well. Cisco Systems is most likely to post 12.49 billion in revenue for the fourth quarter of fiscal year 2015, together with 1% to 3% surge in their orders of product. Furthermore, earnings per share are most likely to be meet consensus expectation of 56 cents. The company stock has rose by almost 5% this year.

As per analysts at MKM Partners, there will be an increase in reacceleration in company year over year growth in product order for the next quarter, mainly due to the ease in order combined sales. Furthermore, the sell side company believes that the latest announcement related to retirement of John Chambers is a good sign for the company, since it proposes that Cisco feels excellent about its current condition and Mr. Chambers is completing his tenure on a higher note.

Almost 47 analysts were polled by Bloomberg, out of which 27 rated Cisco stock as a Buy, 14 gave Hold rating while the remaining 6 assigned Sell rating to the stock of the company. The twelve month consensus price target stood at $30.17.

Cisco Systems stock was down 0.07% to 29.21 at market close on Monday May 11 and decreased further by 0.72% to $29 during pre-market session on Tuesday as of :49 AM EDT.