Boston, MA 08/11/2014 (wallstreetpr) – Just a few days before the announcement of the financial results for the fourth quarter, network communication device maker Cisco Systems, Inc. (NASDAQ:CSCO) is rumored with news of a layoff. Recently, software major Microsoft Corporation (NASDAQ:MSFT) announced a big job cut during their earnings announcement. Will Cisco follow the pattern of Microsoft or allow the rumors to have its own fate? However, the company will release its financial results on August 13 after the market closes. It will also be holding conference call on the same day at 4.30 p.m. eastern time. In any case, the company’s stock will be watched this week.
Rumors On Lay Off
There are already reports indicating rumors of a possible layoff coming in either this week during the fourth quarter results announcement or in October, probably during the first quarter earnings number. Cisco Systems, Inc. (NASDAQ:CSCO) has refused to either confirm or deny it. However, the rumors assumed importance since some of the divisions was reportedly being reorganized raising suspicion about a probable layoff announcement.
Earlier, the network equipment maker had announced at least three rounds of workforce reduction, i.e. one between the years 2011 and 2013, involving 12K people. In the last two years, it had announced 2% job cut in 2012 and another 4K in 2013 despite delivering better than expected results.
What To Expect In 4Q
On average, Wall Street analysts’ expect a modest rise in earnings per share estimation to 53 cents from 52 cents earned in the year-ago quarter with estimation ranging between 51 cents and 54 cents. However, the analysts’ predict Cisco Systems, Inc. (NASDAQ:CSCO) to generate 2.2% lower revenue at $12.14 billion. Their highest estimation was $12.25 billion, and their lowest prediction was $11.80 billion.
Earnings Revision
Analysts’ have not revised their earnings estimation during the last two-month period for the fourth quarter. Three months back, they were expecting 51 cents a share. It remained same for the current year, as well as, the next fiscal year earnings predictions.
In the last four quarters, Cisco Systems, Inc. (NASDAQ:CSCO) failed to meet earnings estimation in two quarters and the other two others, its earnings topped one quarter, and in line with expectations the other quarter.
