looks like Street is trying get a CSCO rally revved up <<Cisco Seen Giving Investors Treat
Nov 2 3:39pm ET
By Ben Klayman
CHICAGO (Reuters) - Cisco Systems Inc. , which makes the networking gear that helps power the Internet, will likely drop a belated Halloween treat in investors' bags when it reports results on Monday, signaling the end of frightful sales declines, analysts and investors said.
As a bellwether New Economy stock, Cisco's fiscal 2002 first-quarter results -- due on Monday after the market close -- will serve as proof the tech industry has reached its nadir and will begin to rebound soon, analysts said.
"They will attempt to make the (post-earnings conference) call as positive as possible by signaling their overall business is at a bottom and the fiscal second quarter should see an uptick in revenue and earnings per share," said Justin McNichols, portfolio manager with San Francisco asset management firm Osborne Partners Capital Management, which owns Cisco shares.
"I would be surprised if they didn't say both of those things," he added.
Analysts expect San Jose, California-based Cisco to earn 2 cents a share, with a range of 1 cent to 3 cents, according to Thomson Financial/First Call, which tracks such data. Revenues for the quarter ending Oct. 31 are expected to finish at $4.1 billion, with a range of $4 billion to $4.3 billion.
No surprises are expected in the results, as just last month Chief Executive John Chambers said he was "very comfortable" with Wall Street's estimates. Cisco, the world's biggest Internet networking company, said in August sales would be flat to down 5 percent from the fourth quarter's $4.3 billion.>> end partial quote |
