A year after network equipment maker Cisco Systems Inc unnerved investors with yet another weak quarterly outlook the company looks set to report a stable quarter buoyed in part by improving enterprise demand in the United States.
Analysts on average expect Cisco to post earnings of 43 cents a share excluding items, up 16.2 percent, in the quarter that runs until end-January, on a revenue increase of almost 8 percent to $11.23 billion, according to Thomson Reuters I/B/E/S.
For the current quarter analysts estimate earnings of 45 cents a share on revenue of $11.48 billion.
Cisco is due to report its second quarter results after the bell on Wednesday, February 8.
"We believe improving demand in the U.S. is driving a recovery in Cisco's business with solid growth across U.S. enterprise and commercial offsetting weakness in Europe and parts of Asia such as India," Natarajan Subrahmanyan, analyst at The Juda Group, wrote in a note.
He added that "Cisco will outgrow its peers over the long-term, given enterprise networking is outgrowing overall IT spending."
Investors have been trying to gauge what IT budgets will look like in 2012, with mixed messages from companies in the past two months, and will be keen to hear Cisco's take on the... Source/Origin >> Read More
