Earnings Watch: Cisco earnings: Trade war, NetApp warning are spooking investors

Cisco Systems Inc. heads into its fourth-quarter earnings report Wednesday facing concerns about its exposure to the U.S.-China trade impasse and a revenue-guidance warning from NetApp Inc. last week. Investors have driven shares of the networking giant down 13% in the past month amid fears that tussling with China will weigh on tech spending, with…

Earnings Watch: Cisco earnings: Trade war, NetApp warning are spooking investors

Cisco Systems Inc. heads into its fourth-quarter earnings report Wednesday facing concerns about its exposure to the U.S.-China trade impasse and a revenue-guidance warning from NetApp Inc. last week. Investors have driven shares of the networking giant down 13% in the past month amid fears that tussling with China will weigh on tech spending, with NetApp as a prime example. Analysts, though, remain upbeat about Cisco’s

CSCO, -0.97%

 prospects, largely because it has diversified its product and services portfolio under CEO Chuck Robbins.

“We see Cisco as remaining one of the more defensible stories within our IT infrastructure coverage,” Wells Fargo Securities’ Aaron Rakers said in an Aug. 9 note, highlighting Cisco’s expanding software and subscription revenue, sales of switches and WiFi upgrades, and growth of enterprise licensing agreements. “We are expecting positive results from Cisco this quarter given our industry discussions, and believe the stock pullback given the macro-concerns is healthy” heading into the quarter, Piper Jaffray’s James Fish said in an Aug. 7 note that maintained an overweight rating on Cisco shares with a price target of $58. Read more: Chuck Robbins decided to ‘cha
Read More From Publisher