Earnings Preview: Cisco Reports Fiscal Q2 Results Wednesday

| About: Cisco Systems, (CSCO)
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Cisco Systems, Inc. (NASDAQ:CSCO) is expected to report earnings for last fiscal quarter after the closing bell on February 08, 2012. Cisco Systems, Inc. designs, manufactures, and sells Internet protocol-based networking and other products related to the communications and information technology industry worldwide. The company was founded in 1984 and is headquartered in San Jose, California. Cisco Systems trades an average of 38.2 million shares per day and has a market cap of $106.4 billion.

52 Week High: $22.15
52 Week Low: $13.30
Book Value: $8.79
Float Short: 1.13%

According to EDGAR Online, on average, 12 analysts are expecting the same in earnings as the last quarter of $0.43. Wall Street is expecting $0.43 per share based on earnings estimates. The current trailing twelve months P/E ratio is 14. The forward P/E ratio is 12.59. From a month ago, the stock has increased in price 4.65%, and moving in price -8.42% from one year ago. The stock is performing better than the overall market with a relative gain. When comparing to the S&P 500, the year to date difference is 3.90%.

The chart looks good with all the important moving averages including the 90 and 200 day moving averages moving higher in lockstep. I also like the company in general from all of my experiences with the products. Cisco pays a yearly dividend of $0.24 as reported by Zacks. Not bad for a company with a name like Cisco and with the low earnings multiple currently priced in.

Management has provided an improvement of year-over-year revenue. Revenue reported was $43.22 billion for 2011 vs. $40.04 billion for 2010. The bottom line has falling earnings year-over-year of $6.49 billion for 2011 vs. $7.77 billion for 2010 .The company's earnings before interest and taxes are falling, with an EBIT year-over-year of $7.67 billion for 2011 vs. $9.16 billion for 2010.

The short interest is relatively low at 1.13%. Be sure to look over the chart below with the short interest in both total shares shorted and number of days to cover short interest based on daily volume. This will give you an idea of the trend.

Here is a look at the fiscal year revenue:


Here are the last few quarters, to get an idea how well they perform compared to estimates:

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for CSCO:


The number of days to cover short interest based on average daily trading volume for CSCO:


I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.