Yahoo Finance What Can We Expect From Cisco Systems, Inc.’s (NASDAQ:CSCO) Earnings In Next 12 Months?
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After Cisco Systems, Inc.’s (NASDAQ:CSCO) earnings announcement on 26 January 2019, analyst consensus outlook seem pessimistic, with earnings expected to decline by -3.4% in the upcoming year. However, compared to its 5-year track record of the average earnings growth rate of -13%, this is still an improvement. Currently with an estimated 2019 profit of US$12.8bn, the consensus growth rate suggests that earnings will drop to US$12.4bn by 2020. Below is a brief commentary around Cisco Systems’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Cisco Systems
What can we expect from Cisco Systems in the longer term?
Longer term expectations from the 28 analysts covering CSCO’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for CSCO, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the estimated 2019 net income level of $12.8bn and the final forecast of approximately US$14bn by 2022, the annual rate of growth for CSCO’s earnings is 3.9%. EPS reaches $3.51 in the final year of forecast compared to the current $2.86 in estimated EPS in 2019. However, the expansion of the current 0.2% margin is not expected to be sustained, as it begins to contract to 0.2% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Cisco Systems, I’ve put together three important aspects you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Cisco Systems worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Cisco Systems is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Cisco Systems? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. On rare occasion, data errors may occur. Thank you for reading.
