Cisco Prepares to Report Q4 Earnings Amid Restructuring and Rising Estimates

Cisco Systems is set to report its fiscal fourth-quarter results on August 12. The company guided for Q4 adjusted earnings per share of $1.16-$1.18 and revenue of $16.7B-$16.9B in its previous report, surpassing analyst expectations.

Since then, analysts' estimates have risen to $1.17 for EPS and $16.83B for revenue. Cisco's restructuring plan aims to invest in growth opportunities, including silicon, optics, security, and artificial intelligence. The company expects pre-tax charges of up to $1B, with approximately $450M recognized in Q4.

As part of this plan, Cisco will reduce its workforce by fewer than 4,000 jobs, representing less than 5% of its total employee base. KeyBanc raised its price target on Cisco to $130 from $125 and maintains an Overweight rating. BofA also increased its target, first to $135 from $114 and then to $150 from $135.