Expect tech investors to absolutely scrutinize the news out of Silicon Valley next week as Cisco reports earnings.
Tech traders are desperate to get a better reading on the sector after technology shares took a quiet beating this week with Apple , Microsoft and Google all dragging down the Nasdaq.
Cisco is the dominant player in technology infrastructure buildout, making such things as routers and switches. Because that’s the heart and soul of corporate tech spending, analysts are expected to really pull apart the numbers as they look to better understand the state of business spending on expensive technology advances.
For insights we turn to Sanford Bernstein analyst Jeff Evenson.
"For Cisco I’m expecting an in-line quarter and further evidence that they continue to take share of corporate IT budgets," he tells the traders.
That sounds bullish. Do you buy ahead of earnings?
"I think Cisco is undervalued right now. And I think revenue estimates are on the conservative side given where the economy is right now. I’ve given it an 'Outperform' rating."
And the million dollar question, will Cisco lift the overall tech sector?
"That’s a hard question to answer," replies Evenson. "I think CEO John Chambers will keep his comments focused on Cisco’s performance and outlook."
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