Cisco has managed to be in line or beat analysts’ predictions for its financial results for at least the last four quarters, even in the midst of an economic downturn. In February, analysts were cautious about Cisco’s Q2 earnings as some drew concern over softness in Cisco’s enterprise business, but in the end it announced a 16.5% increase in sales year-over-year for the quarter. Cisco is due to release its Q1 results on Wednesday and analysts are once again getting nervous.
Cisco forecasts it will post an 8% revenue hike to $10.31 billion, which is around what Wall Street analysts are predicting, according to Barrons. However, Barrons cites Morgan Stanley analyst Scott Coleman as fearing that growth after Cisco’s Q1 will weaken. Mark Sue of RBC Capital Markets notes that “it may take a while to see meaningful top-line growth acceleration,” according to a story in MarketWatch. That story also cites Analyst William Choi of Jefferies & Co as saying Cisco is experiencing sluggish demand overall.
However, there was one bright spot. Analyst Simon Leopold of Morgan Keegan believes Cisco could weather the storm by investing during the downturn, according to the MarketWatch story.
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