Network equipment maker Cisco (CSCO) is not expected to set the Street on fire but analysts expect the company to at least maintain its earnings in the fourth quarter, scheduled to be announced on Wednesday.
Analysts on average expect earnings per share of 45 cents and revenue of $11.61 billion for its fiscal fourth quarter.
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Shares of the tech bellwether have been showing signs of some activity in recent weeks, gaining almost 26 percent over the last one year though it has fallen 2.1 percent in 2012 so far.
After a period of stagnation there are signs of a revival in the IT spends of large enterprises in the United States and in Europe too, where economies are in the grip of a debt crisis.
"We note that large telcos such as Verizon Business and AT&T are in the process of meaningfully scaling out their Cloud services infrastructures, an attractive near-term growth opportunity for Cisco's data center equipment sales," Deutsche Bank Brian Modoff told Reuters.
Three months back Chief Executive John Chalmers had cautioned investors that the slowdown in Europe could hurt technology spending.
For fiscal 2013, the company is expected to give a cautious outlook with Europe nowhere near a solution to solve its debt crisis.
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Morgan Stanley analyst Ehud Gelblum told Reuters that accelerating demand from service providers primarily in North America in the second half of 2012 would likely offset slower orders in enterprise, Cisco's exposure to Europe and flat public sector spending.
The company's shares are trading slightly more than nine times their 12-month forward earnings.