Cisco Expected to Beat Estimates on Wednesday

by: Eric Savitz

The Street seemed increasingly convinced that Cisco (NASDAQ:CSCO) will produce results ahead of the consensus when it reports results after the close Wednesday for its fiscal first quarter ended October.

Last week, analysts at both Goldman and RBC predicted results for the quarter will beat expectations. Monday morning, there is more of the same.

Pacific Crest’s Tim Daubenspeck Monday morning asserted that Cisco should report “slight upside” to his current estimates. He now sees revenue of $9.6 billion to $9.7 billion, and EPS of 37 cents. The Street sees $9.54 billion and 35 cents. “North America had a solid quarter across all three segments,” carrier, commercial and enterprise, he says. “There were no reports of any material misses in these groups in the quarter, as economic concerns did not materialize.”

Meanwhile, Citigroup’s Paul Mansky says his estimates of $9.52 billion and 36 cents are potentially too low by $50-$100 million and a penny a share. He says Cisco’s service provider strength and international exposure will offset a “less than stellar U.S. enterprise and continued push-outs from Japan.” Mansky maintains a Hold rating on the stock, but nonetheless raised his price target to $34 from $33, asserting that “continued top line strength amidst the market trend toward tightening leadership will likely be met with near-term appreciation.”

Cisco Monday is up 69 cents, or 2.1%, at $33.20.