To The Moon

$Cisco(CSCO)$ is set to report its fourth-quarter results on 16 Aug after market close. Investors would be looking at their order trends and look for updates to Cisco's full-year 2024 outlook. I will be looking out for any updates to their 2024 guidance and also see if Cisco can stick to what they have previously set out for the full-year outlook. Cisco has released two new AI-focused networking chips to compete with existing rival offerings in June. I will be looking to see if there is any demand increase in the orders. In this article I will be looking at the fundamental data of Cisco and use Technical Analysis to see how Cisco have been trading prior to its results release. Cisco (CSCO) Earnings Data Cisco is expected to post EPS of $1.06, with revenues coming in at $15.05 billion, this would be a 15% increase compared to same period last year. Cisco is expected to outperform its competitors with strong enterprise demand backing its earnings. Cisco (CSCO) Earnings History Cisco might suffer from weak cloud service provider sales but due to an improvement in enterprise spending, this could still support their revenue growth. I would expect Cisco to post a significant increase in revenue and also beat the EPS forecast by coming in the range of $1.08 to $1.10. Cisco (CSCO) Financial Overview I am expecting the total revenue to be much better than last quarter, this is because enterprise are spending more on networking solutions because of risks of cyber threat. There are also enterprises performing equipment refresh because outdated firmware and hardware are also cause of risks to cyber threat. Cisco (CSCO) Insider Transactions Cisco corporate insiders has sold shares worth $651.3K in the last 3 months, this amount might not be a significant concerns. This might be due to some bonus or profit taking. I would think corporate insiders would be buying back shares after a positive guidance. Cisco (CSCO) Hedge Funds Holdings This might be a concern as hedge funds are decreasing their holdings by 52.1M shares. This could be due to the weak demand coming from cloud providers. Major cloud providers are also reducing their spending on technology infrastructure. But I believe the strong enterprise spending demand should bring confidence back to the hedge funds. Cisco (CSCO) Year-To-Date Earnings Cisco have returned more than 10% YTD and with stronger demand from enterprises offsetting weak cloud service providers sales, it could provide a more than 15% YTD by end of 2023. I would think the sales from its enterprise segment should increase over the next 2 quarters as enterprises would be planning for technology hardware refresh. Cisco (CSCO) Sentiment Analysis Investors have been neutral on Cisco as I believe current economic sentiment might affect the sales from cloud service providers. They are a major part of Cisco sales. Things should be improving with stronger enterprise demand due to the technology refresh cycle. Portfolios holdings have increase by 1.1% over last 7 days, by reduced by 1.5% over last 30 days. Technical Analysis – Simple Moving Averages (SMA) Cisco have been on a bull trend for quite some time, and it is currently on a upside move bull trend. This might even move higher as a stronger results is expected, but I will be looking at how Cisco will be adjusting their full-year outlook and guidance. With their new networking chips, how is the demand from both cloud service providers and enterprises? Technical Analysis – Relative Strength Index (RSI) RSI momentum is normal, I believe current stock holder are staying put to see how Cisco would be providing their updates for the full-year outlook. There is no potential high buying or selling expected. I will hold on to planning a trade for Cisco to load more shares. Technical Analysis – Average Directional Index (ADX) ADX show that it is between 20 and 40 which indicate a developing trend. With +DI above -DI with a good margins, this suggest a strong bullish upside developing trend. Whether Cisco would be able to maintain or even move into a strong trend would depends on how its results turned out. A positive outlook and guidance updates could boost the trend as well. Technical Analysis – Parabolic SAR (SAR) SAR show that Cisco is a bullish upwards trend and there is no potential reversal of trend change. I believe Cisco should be able to continue this bullish upwards trend unless a negative outlook and guidance updates was presented. Revenues is expected to be better than last quarter because of strong sales from enterprise demands. Summary Based on what I have observed, Cisco is currently trading in a bullish developing trend. Analysts are expecting a positive earnings on the back of stronger enterprises demand. Investors are looking out for the updates to their outlook and guidance for the full-year. With economic climate and market pressure, I will be watching the price and volume movement of Cisco prior to its result announcement. There might be a chance that investors are holding back and wait for positive news from Cisco before taking a long position. Appreciate if you could share your thoughts in the comment section whether you think Cisco would be providing a positive updates to full-year outlook and guidance and also a strong demand for their 2 new chips released in June 2023. @TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts. Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.