Cisco Systems Down Modestly Ahead of Conference Call (CSCO)

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The networking behemoth posted $0.36 EPS on $9.43 Billion in revenues.  First Call estimates were $0.35 EPS and $9.29 Billion revenues.  Unfortunately we don’t get guidance out of Chambers & Co. until the conference call, so until then this is just an incomplete earnings release.  Shares are currently down close to 1% in immediate after-hours trading, but again we are waiting until we have guidance before declaring a win or loss.

FOR CONFERENCE CALL COMPARISONS:  next quarter estimates are $0.36 EPS and $9.38 Billion in revenues.  If we get any fiscal July-2008 targets from the company, estimates are currently $1.55 EPS and $39.7 Billion in revenues.  If the company only gives guidance in percentages for fiscal 2008 you would get a static 2008 to 2007 implied 16.5% gain in EPS and a 14% gain in revenues.  Even after the recent drop shares are up almost 10% over the last quarter. 

This was also the fiscal year-end, so at $1.34 non-GAAP EPS and a $29.69 close the stock has a trailing P/E ratio (non-GAAP of course) of 22.15.  With a GAAP EPS of $1.17 for the fiscal 2007 report, this has a trailing P/E of 25.3 for those who wish to be technical and use this on a comparable basis to many of the S&P 500 companies.

Jon C. Ogg
August 7, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.