Cisco Systems Inc (CSCO) is scheduled to report its Q3FY24 results on May 14th, with expectations of a slight increase in revenue to around $12.8 billion, despite a 14% decline from last year. The company’s product sales have slowed down as customers focus on deploying previously purchased hardware, impacting revenue. Competition from smaller networking companies is also affecting growth. However, Cisco has seen growth in services revenue, with margins improving due to cost management and a shift towards recurring revenue models. The company’s stock has seen fluctuations in recent years, underperforming the S&P 500, but is currently considered somewhat undervalued. Cisco’s focus on recurring revenue models and cybersecurity, along with potential economic trends towards digitalization and networking, could drive stock performance in the future. Trefis values CSCO stock at approximately $55 per share, about 15% above the current market price. Investors are advised to consider these factors when evaluating Cisco’s performance and potential for the future.
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https://www.forbes.com/sites/greatspeculations/2024/04/30/with-product-sales-sluggish-what-to-expect-from-ciscos-q3-earnings/
