Investors are eager to hear from Cisco on Wednesday. The maker of routers and networking gear is widely considered a barometer for corporate tech spending.
According to the Wall Street Journal, “Cisco is expected to post an 18% drop in sales…but investors hope that results will offer signs that the deep slump is coming to an end.”
What the analysts say:
On average analysts expect Cisco to report fiscal fourth-quarter revenue of $8.49 billion, down 18 percent from a year earlier but up 4 percent from the previous quarter, according to Reuters Estimates.
Earlier in the month, Baird upgraded Cisco to "outperform" from "neutral" on an improving demand outlook and promising new product cycles. Analyst Kenneth Muth said he believes there is more upside than downside risk and raised his price target to $26 from $20.
Also, Credit-Suisse analyst Paul Silverstein raised his rating from “Neutral” to “Outperform,” earlier in the month and increased his price target to $25 from $22.
Even the more cautious analysts see long-term demand for switches and routers, remaining solid.