Benzinga | May 18, 2021 10:05AM EDT

Cisco Systems Earnings Preview

On Wednesday, May 19, Cisco Systems (NASDAQ:CSCO) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Cisco Systems reporting earnings of $0.82 per share on revenue of $12.56 billion. In the same quarter last year, Cisco Systems reported EPS of $0.79 on revenue of $11.98 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 3.8% increase in the company's earnings. Sales would be up 4.82% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past: Quarter Q2 2021 Q1 2020 Q4 2020 Q3 2020EPS Estimate 0.76 0.70 0.74 0.71EPS Actual 0.79 0.76 0.80 0.79Revenue Estimate 11.92 B 11.85 B 12.08 B 11.88 BRevenue Actual 11.96 B 11.93 B 12.15 B 11.98 B

Stock Performance

Shares of Cisco Systems were trading at $52.94 as of May 17. Over the last 52-week period, shares are up 16.77%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cisco Systems is scheduled to hold the call at 16:30:00 ET and can be accessed here.