Cisco Earnings Preview: Currency Headwinds May Offset Better Carrier Spending

Cisco is scheduled to release its Q2 fiscal 2016 (ended January) earnings on Wednesday, February 10th. While the company managed to surpass market expectations with its Q1 results, its guidance for the recently concluded quarter wasn’t promising. Citing macroeconomic uncertainty leading to weak order growth and currency headwinds as the main reasons, Cisco stated at the end of Q1 that it expects flat revenue and non-GAAP EPS growth (year-over-year) for the second quarter of fiscal 2016. However, its performance should improve in subsequent quarters as its deferred revenues grew strongly during the first quarter.   Additionally, there have been several developments over the past few months that indicate a bright future for the company, including a long-term alliance with Ericsson and the Jasper acquisition.

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