Semiconductor manufacturer Cisco Systems, Inc. (NASDAQ:CSCO) is reporting fourth quarter fiscal year 2014 earnings on Wednesday, August 13th, after the close of trading. Analysts have a relatively wide range of expectations for Cisco, but nearly all are expecting reasonably strong results this quarter.
J.P.Morgan Cisco Systems preview
J.P.Morgan analysts Rod Hall and colleagues published an investment report on Cisco Systems on Monday, August 11th, reiterating their Underweight rating and $17 price target for the equity.
The JPM analysts explain their point of view in the introduction to the report. “On balance we expect a solid report and potentially a slightly better guide into FQ1. However, we continue to believe that Cisco will find it difficult to maintain switching margins as bare metal/SDN take off in late 2014 and 2015.”
JPM anticipates total routing revenue to decrease by 6.4% year over year in FQ1 ’15 to $1.9 bil, better than -8.7% year over year in FQ4 ’14 and -9.6% year over year in FQ3 ’14.
Hall et al. are projecting total Cisco revenues of $12,132 mil (cons: $12,150 mil, guid: $12.044 mil-$12.293 mil), GM of 61.5% (cons: 61.7%, guid: 61%-62%), EBIT margin of 28.0% (cons: 27.9%, guid: 27.5%-28.5%), and EPS of $0.52 (cons: $0.53, guid: $0.51-$0.53).