Will Cisco be back to its old winning ways?

Written by Ben King, Contributor


Analysts are expecting Cisco to resume its old habit of beating its profit targets by a cent per share when results are announced today. The company had a tradition of always exceeding its predicted earnings per share by at least one cent throughout the boom years of the 1990s, until the bursting of the internet bubble put many of its customers out of business. Average expectations for Cisco's second-quarter revenue are $4.55bn or five cents per share, excluding special items. However, analysts point out that the company's share price is still extremely high relative to earnings, even though the group is only growing slowly.
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