Piper Sandler: Cisco (CSCO.US) is expected to grow slightly in Q4 due to Splunk.
Cisco Systems (CSCO.US) is scheduled to announce its Q4 results on Wednesday. Wall Street analysts expect Cisco Q4 revenue of $13.54B, down 6.3%; earnings per share of $0.85, down 21%.
Piper Sandler expects Cisco's Q4 performance to "modest growth" under Splunk. Analyst James Fish noted that while "modest growth" is expected, the valuation is more reasonable and easier to compare, but the outlook for the first quarter of fiscal 2025 remains "too aggressive". Cisco completed the acquisition of cybersecurity company Splunk for $28B earlier this year.
Analysts said, "Cisco has provided a softer guidance for its fiscal 2025 revenue to grow in the low to mid-single digit range, with an operating margin of about 32%. We expect the company to reiterate its revenue guidance (or possibly adjust to the lower end of the range if not, while Wall Street is at the high end of the range)."