Cisco (CSCO) Q1 Offers No Surpises - Needham & Company

Needham & Company analyst Alex Henderson reiterated a Hold rating on Cisco (NASDAQ: CSCO) following Q1 results which offered no surprises.

Henderson commented, "Cisco seems to be getting pretty predictable. Perhaps that’s the goal. It looks to us like in order to produce upside to EPS they offer overly conservative guidance and then beat on the GM line. Cisco has offered Q-Q down GM guidance virtually every quarter for the last three years and beaten their GM guidance, adding a penny or two to the EPS in 10 of the last 14 quarters. There is something to be said for predictability. Cisco’s quarter hit our expectations on the button: Revenue essentially in line, GMs a bit ahead as has been the norm, EPS in line to a hair ahead, with guidance soft on the top line and EPS due to weak conditions in Service Provider and Emerging markets."

The firm is trimming $0.01 out of our CY4Q/FY2Q January quarter estimate, putting our forecast at the mid-point of the guidance of $0.50-0.52 (Street was at $0.53). They are maintaining estimates for both the April and July quarters at $0.52 (Street is at $0.53 and $0.54).

For an analyst ratings summary and ratings history on Cisco click here. For more ratings news on Cisco click here.

Shares of Cisco closed at $25.11 yesterday.

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