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Cisco’s Q4 adjusted earnings per share look to be coming in at $0.528, better than Q3’s $0.51. Sales have also improved over the quarter, up to $12.15 billion, and look set to increase the company’s pre-tax profits from $2.642 billion up to $3.446 billion.
Shares in the market have mostly performed well since the last set of figures back in May, but the general market selloff has taken some gloss off this performance. This has arrived at the same time as one of Cisco’s primary competitors, Juniper Networks, release their slightly worse-than-expected figures. Although Juniper only missed by a fraction it was the accompanying forward guidance that caused most of the damage.
This forward guidance saw a number of institutions downgrade the company, and a sharp selloff of the shares saw the company drop off by more than 10%. The company has seen its shares recover since then, but it still sits some way off the levels that it gapped down from.
Obviously what goes for Juniper Networks does not necessarily go for Cisco, but it has taken the edge off the markets' enthusiasm for the sector. Of the 43 institutions rating Cisco, 23 have them as a buy or strong buy, with only six as a sell or strong sell. The shares are close to the bottom of the range and hovering just above the oversold levels, with the 100-day moving level looking supportive below.