CISCO SYSTEMS FQ4 2017 EARNINGS PREVIEW: FEDERAL SPENDING IN FOCUS

Cisco Systems FQ4 gains 2017 are scheduled for Wednesday after closing bell, and analysts expect a non-GAAP profit of 61 cents a share, compared with $ 12.07 billion in sales. With the latest report on the company’s results last May, the administration led by 60 cents to 62 cents per share to non-GAAP earnings from $ 11.88 billion to $ 12.13 billion in sales.

In the fourth quarter last year, Cisco Systems reported non-GAAP earnings of 63 cents per share, revenue of $ 12,640 million.

Benefits Cisco Systems FQ4 2017:

In a letter dated August 14 note, KeyBanc analyst Alex Kurtz, highlighted some key areas of focus for revenues from Cisco Systems FQ4 2017. Sales variation has long been an important area for the company, and are at The search for $ 3.6 billion in switching turnover. The company recently revealed new switching products for Cisco Catalyst Live that believes that will drive a 1.7% increase in revenue for 2018 Switching, although the consensus is close to 0% growth.

It will also analyze gross margins, and estimated at 63.6%, just below the consensus figure of 64%. He noted that Cisco is beginning to change its customer base to purchase software subscriptions with their hardware rather than a single license. He noted that deferred and recurring revenues also affect the company’s performance during this transition.

Vijay Bhagavath, an analyst at Deutsche Bank, said in a note earlier this month that the Cisco company’s demand for the new Catalyst 9000 Campus switch and intention-based software, the 100G Nexus Center data Switching products and next generation security seemed to be stronger than expected. In addition, it has found on their pulse channel two-digit order for Analytics, Automation, Internet objects and network management company cloud computing products.

However, he said the international plan, IT spending remained low in the United States, Germany, the Middle East and emerging markets.

Government spending on Cisco Systems revenue FQ4 2017:

It is expected that government spending on technology again one of the company’s key results will focus. By publishing guidelines for the fourth fiscal quarter, the company said about one percentage point of their turnover drops from 4% to 6% due to uncertainty over federal spending. President Trump said he would cut spending, and even now legislators have not yet finalized the federal budget. This leaves in place the uncertainty that affected Cisco’s third quarter results.

Kurtz drew attention to federal spending as a key area for the revenue of Cisco Systems FQ4 2017. He spoke with value-added resellers and suppliers who rely on federal spending and found that the budget calendar has Changed due to the transition to new presidential administration, which updated the government’s priorities.

On the other hand, Bhagavad said earlier this month that the evolution of US public sector orders and particularly federal IT spending have improved, citing its own Enterprise IT, Cloud search chain Provider and service.

Guidelines for the quarter October:

For the October quarter, the consensus is currently at $ 12.06 billion in sales and non-GAAP earnings of 60 cents per share. Kurtz noted that even though the fourth fiscal quarter has always been great to pass a federal, this factor is likely to have an impact on the October quarter’s delivery outlook.

The day before the Cisco Systems FQ4 2017 profit were scheduled for launch, the company’s shares rose to 0.57% to $ 32.02 during normal trading hours.



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