Cisco earnings preview

Will Cisco start a new trend after earnings Wednesday?

Tech (2)

On Wednesday August 12th, Cisco (CSCO), a leading global supplier of network hardware and software, is expected to announce 4Q EPS of $0.74 compared to $0.83 last year on sales of $12.1B vs $13.4B a year ago. The expected move after earnings is up or down 5%. CSCO jumped 4.5% after the last earnings report. The Bloomberg analyst consensus report is slightly mixed with 14 Buys, 13 Holds and 2 sell recommendations. 

Looking at "TC Market Buzz" inside the market analysis tab, Cisco has below average news volume leading into earnings however the news bias has been largely positive at 91% with the majority of discussions involving the companies expected earnings. 

Source: TC Market Buzz

From a technical point of view, CSCO has posted a strong rebound off of March lows near $32. Key overlap resistance is set at $50.25 with Support at $43.50. Traders will be looking for a break above or below these key levels. A break above Resistance would give a target of $54 on the upside to meet the next resistance level from June of 2019 while a breakdown would indicate next major support at $40.50.

Source: GAIN Capital, TradingView

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