On Tuesday, Cisco Systems Inc. (CSCO) shares are up 0.88% to $45.01. Investors and traders will also observe the company's fourth-quarter revenue report, scheduled for this Wednesday after hours.
As it focuses on high-growth sectors like cybersecurity and artificial intelligence, Cisco intends to ax thousands of workers in a second round of layoffs this year, matching or surpassing the 4,000 positions eliminated in February, according to Reuters.
CSCO Stock Forecast: Earnings Projection
The company's coming fourth-quarter results are anticipated to include the announcement. Cisco is expanding through deals and expenditures in artificial intelligence (AI) to respond to difficulties in its core business.
On August 14, Cisco Systems, Inc. (CSCO) will announce its fiscal 2024 fourth-quarter results. The business projects revenues for the fourth quarter of its fiscal year 2024 to range from $13.4 billion to $13.6 billion. Non-GAAP revenue per share is anticipated to be between 84 and 86 cents.
Cisco Competitive Pressure
Due to fierce competition and inadequate demand from cable and telecommunications companies, Cisco has been experiencing slow networking sales. Overstock with clients has hindered growth in the last few months.
Cisco reported $12.7 billion in earnings for the third period of fiscal 2024, a 12.8% year-over-year decrease. This decline was mostly caused by an 18.6% drop in product earnings, which comprised 71% of the company's overall revenue. Except for Splunk (which was acquired on March 18, 2024), order volumes for goods remained constant from year to year, indicating weak demand.
The fierce rivalry in the AI-driven networking market, which is made worse by Hewlett Packard's HPE acquisition of Juniper for approximately $14 billion, poses a further threat to Cisco's prospects.
CSCO Bull Case
The estimated $1.02 billion agreement mark for cooperation revenues points to a modest year-over-year decrease.
On the other hand, Cisco is profiting from robust security growth due to strong customer demand for suites of products like XDR, Secure Access, and Multi Cloud Defense.
Splunk and Isovalent are two acquisitions that have strengthened the portfolio. Splunk's addition strengthens CSCO's recurring revenue stream. In the fiscal third period, annual recurring earnings increased by 22% to $29.2 billion. In the quarter that will be reported, the trend is anticipated to have persisted.
