Earnings Preview: Cisco to report 3Q earnings
NEW YORK (AP) — Cisco Systems Inc., the world's largest maker of computer networking equipment, has been climbing back from a dip, and analysts expect it to report continued progress when it reveals earnings for the fiscal third quarter after the market closes Wednesday.
WHAT TO WATCH FOR: Cisco was coming nicely out of the recession, but hit an air pocket a year and a half ago. Competitors were nibbling at its core markets, and Cisco's approach looked scattershot.
CEO John Chambers started slashing jobs and narrowing the company's focus, a strategy that started bearing fruit late last year. Signs of recovery started appearing in the quarter that ended in October, and the quarter that ended in January confirmed them.
For investors, the celebration already appears to be over. Cisco shares climbed 60 percent from August to March, but have retreated since then, possibly on macroeconomic concerns. As a maker of big-ticket capital equipment with an international reach, Cisco is sensitive to global economic swings, and analysts will be listening for the CEO's commentary on the conference call after the earnings report.
Wedbush Morgan analyst Rohit Chopra said he was concerned about both the economy and intensifying competition, but continues to see the company as well positioned.