Cisco Systems - LONG swing trade ideaQ4 2024 financial results – solid performance is expected
Cisco Systems is scheduled to release its Q4 2024 financial results on August 14, 2024, after the U.S. market closes.
Regarding expectations, Cisco has forecasted Q4 revenue between $13.4 billion and $13.6 billion, which is above analysts’ estimates of $13.23 billion. The company has also projected earnings of 85 cents per share at the midpoint of its guidance, compared to the analysts’ consensus estimate of 86 cents per share.
Growth after acquisition of Splunk
Cisco Systems completed the acquisition of Splunk on March 18, 2024. In our view, Cisco Systems’ recent acquisition of Splunk in 2024 brings numerous strategic benefits, enhancing Cisco’s capabilities in several key areas:
Enhanced Security Solutions: The integration of Splunk’s robust data analytics and security information and event management (SIEM) capabilities with Cisco’s existing security products will provide a more comprehensive security solution. This combination is expected to improve threat detection, investigation, and response, making Cisco’s security offerings more competitive in the market.
Improved Observability and AI Integration: Splunk’s strengths in observability and data analytics will enhance Cisco’s ability to monitor and analyze network performance and security. This integration will also leverage AI to provide deeper insights and predictive analytics, helping businesses to preemptively address potential issues (Splunk).
Revenue Growth: The acquisition is expected to add approximately $4 billion in annual revenue to Cisco’s base, significantly boosting its financial performance. This financial strength will enable Cisco to further invest in innovation and expand its market reach.
Market Position and Competitive Edge: By integrating Splunk’s capabilities, Cisco aims to consolidate its leadership in the cybersecurity and data analytics markets. This strategic move positions Cisco to better compete against other tech giants by offering a more integrated and powerful suite of tools for network security and observability.
AI and Cybersecurity Innovations: The acquisition will enable Cisco to develop new AI-driven cybersecurity solutions. For instance, Cisco has already introduced a new AI-focused security system post-acquisition, highlighting the potential for ongoing innovation and development in this space. www.ki-wealth.com