- Don't expect "fireworks" in Cisco Systems' (CSCO +1.6%) fiscal Q2 earnings report after the closing bell, says Drexel Hamilton -- "just more execution."
- And perhaps some color on an acquisition of AppDynamics in the 11th hour before that company planned to go public.
- Switching and routing will keep weighing on results, says the firm's Brian White: He's modeling NGN Routing revenues down by 8% sequentially, Newer Products down 10, Switching down 12%, Other Products down 5% and Services up 2%. But the dividend (forward yield 3.22%) may be reason enough to own, he says.
- It's a tough quarter to forecast, says Credit Suisse's Kulbinder Garcha, but "expectations remain too high." Cisco had a 14-week quarter in fiscal Q3 2016, and Street estimates may be too high for the next quarter, he says. "Taking out the extra week, Street estimates are pointing to a revenue growth of ~6% Y/Y, which we believe is optimistic."
- The company's had tough competition from Arista Networks (NYSE:ANET) and Juniper Networks (NYSE:JNPR), Garcha adds. Their strength shows an accelerated share shift is under way and means that "Cisco’s switching market position remains vulnerable, and switching revenues continued to decelerate."