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Take Your Position: Cisco

Tuesday, 10 Aug 2010 | 5:42 PM ET

The traders will be among the throngs of investors watching Cisco results closely when the tech titan reports on Wednesday August 11th

With Cisco’s routers and switches providing the backbone for technology infrastructure, Wall Street relies on these results to gauge the health of the technology sector and Corporate America broadly.

In fact, Cisco's earnings call has become so important to the Street - investors typically dissect not only what CEO John Chambers says but the tone in which he says it.

What must you know?

As a maker of big-ticket capital equipment, Cisco's sales were hit hard by the recession. However, Cisco’s business came roaring back earlier this year, recovering to pre-recession levels as corporations have regained their confidence and started catching up on delayed upgrades.

Also, Cisco's high profit margins allowed it to keep posting profits during the downturn, but it did tighten its belt and lay off about 2,000 people.

Take Your Position: Cisco
A look ahead of the networking giant's earnings tomorrow, with Simon Leopold, Morgan Keegan analyst.

Last quarter, Cisco completed the acquisition of Tandberg SA, a Norwegian company that's a leading maker of corporate teleconferencing gear. This quarter will be the first to include Tandberg's results for the whole period. UBS analyst Nikos Theodosopoulos expects it to add about 2 percent to Cisco's sales compared to the quarter that ended in May.

What’s expected?

Analysts polled by Thomson Reuters expect Cisco to earn 42 cents per share, on sales of $10.86 billion. Cisco has said it expects between $10.67 billion and $10.92 billion in revenue.

Get more insights. Hear from Simon Leopold of Morgan Keegan. Watch the video now!



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Trader disclosure: On Aug 10, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (AKAM), (BAX), (FCX), (MOS), (PFE), (SU), (XBI); Terranova owns (GLD) Calls;
Seymour owns (AAPL), (BAC), (GOOG), (POT); Finerman owns (AAPL); Finerman's firm owns (ARM); Finerman & Finerman's firm owns (BAC); Finerman’s firm owns (BBY); Finerman's firm owns (LEA); Finerman’s firm owns (KFT); Finerman & Finerman's firm owns (JPM); Finerman & Finerman's firm owns (RIMM); Finerman’s firm owns (TSX); Finerman’s firm owns (GYMB); Finerman’s firm owns (PLCE); Finerman's firm owns (WMT); Finerman's firm owns (DAN); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Pete Najarian owns (CSCO) call spreads; Pete Najarian owns (CTRP) calls; Pete Najarian owns (GS) calls; Pete Najarian owns (RIMM) call spreads; Pete Najarian owns (AKAM) calls; Pete Najarian owns (HPQ) calls spreads; Pete Najarian owns (V) call spreads

For Brian Kelly:
Accounts managed by Kanundrum Capital own (GLD)
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For Hugh Wynne:
Wynne maintains a long position in Duke Energy Corp. (DUK)

Accounts over which Bernstein and/or their affiliates exercise investment discretion own more than 1% of the outstanding common stock of the following companies EIX / Edison International.

The following companies are or during the past twelve (12) months were clients of Bernstein, which provided non-investment banking-securities related services and received compensation for such services AEP / American Electric Power Co Inc, D / Dominion Resources Inc, DUK / Duke Energy Corp, EXC / Exelon Corp, FE / FirstEnergy Corp, PCG / PG&E Corp.

An affiliate of Bernstein received compensation for non-investment banking-securities related services from the following companies AEP / American Electric Power Co Inc, DUK / Duke Energy Corp, EIX / Edison International, FE / FirstEnergy Corp, PCG / PG&E Corp.

In the next three (3) months, Bernstein or an affiliate expects to receive or intends to seek compensation for investment banking services from AEP / American Electric Power Co Inc, D / Dominion Resources Inc, DUK / Duke Energy Corp, EIX / Edison International, EXC / Exelon Corp, FE / FirstEnergy Corp, NEE / NextEra Energy, PCG / PG&E Corp.

Dennis Gartman
***No Disclosures***

Peter Boockvar
***No Disclosures***

Simon Leopold
***No Disclosures***

Joe LaVorgna
***No Disclosures***

Scott Natons
***No Disclosures***

CNBC.com with wires.

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