Earnings Preview: Cisco (CSCO)

Cisco Systems, Inc. CSCO is set to report earnings tonight after the bell. Wall Street analysts are looking for earnings of 35 cents per share, down from 40 cents per share from last year. Revenue is expected to rise to $10.24 billion for this quarter, up from $9.82 billion last year. At last check, shares of Cisco were down 1 cent to $21.98. The stock is trading at 12 times 2011 earnings, and has a 1.14 price to earnings growth (PEG) ratio. The company also announced back in September it would begin paying a dividend before the end of fiscal 2011, but it hasn't started to do that yet. Investors will be looking to see what CEO John Chambers has to say about the broader tech sector, as Cisco products are used in virtually every corner of the the globe. All eyes and ears will also be on the company's guidance, which was the reason for the sharp drop in shares last quarter. If Cisco is able to guide higher for next quarter, names like Juniper JNPR and Alcatel-Lucent ALU could see a boost, given these companies compete with Cisco. Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide.