BUZZ-PREVIEW: Cisco dips ahead of results due after the bell; investors eye rev growth

Shares of Cisco Systems Inc CSCO.O down ~1% on Weds ahead of the networking equipment maker's qtry report after the bell as investors focus on a rebound in rev growth

CSCO up 4.3% YTD, beating Nasdaq's .IXIC 1.2% increase

In November, CSCO forecast rev and profit for the fiscal Jan-qtr above Wall Street estimates as the co benefited from improving demand for its networking gear amid the AI boom

Analysts on avg expect qtrly rev up 8.5% to $13.87 bln, which would be biggest increase in over a year, per LSEG. Adjusted EPS seen at 91 cents vs 87 cents yr-ago

"CSCO appears well positioned to deliver upside to Jan-qtr expectations and raise the FY25 guide. The cyclical recovery in Cisco's core networking markets should continue this quarter and take sequential revenue growth to low single digits," Evercore ISI analyst Amit Daryanani wrote in a preview note this week

CSCO has been focusing on its software business to reduce reliance on its massive networking equipment business, which has suffered in recent years from supply chain issues and a post-pandemic slowdown in demand

25 analysts cover CSCO, on avg rating it 'buy'. Its median PT is $65, which is 5% above its current price of $61.80

CSCO ranks 376 among S&P 500 stocks in terms of how highly recommended it is by analysts