Cisco Systems, Inc. (NASDAQ:CSCO) is due to report earnings after the bell on Wednesday. Beyond the revenue and earnings numbers, analysts will be looking for hints on how well the company’s new products and business model are catching on.
Marketwatch shares some insight on Cisco’s upcoming report.
Cisco Systems Inc. earnings are dependent upon how fast businesses are transitioning to the company’s new line of network switching products and the lucrative new software contracts that are connected to them, analysts say.
Cisco CSCO, +0.11% is scheduled to report fiscal third-quarter earnings on Wednesday after the close of trading.
Raymond James analyst Simon Leopold is among those intrigued by the company’s new offerings. He has an outperform rating and a $50 price target in place on Cisco, and he shared some thoughts on the company’s new model in a note to clients.
“For the first time, customers of the new Catalyst 9000 enterprise/campus switches need to select an accompanying software subscription (DNA Essentials, DNA Advantage, Cisco ONE Advantage) with 3-, 5-, or 7-year terms,” he wrote. “We see this as evidence of the gradual evolution of Cisco becoming a more software-centric company.”
Cisco Systems, Inc. shares rose $0.05 (+0.11%) in premarket trading Wednesday. Year-to-date, CSCO has gained 20.59%, versus a 2.00% rise in the benchmark S&P 500 index during the same period.