By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Cisco Systems will report results Wednesday with analysts eyeing gains in profit and sales amid modest signs of improved demand in the market for data center technology.
Uncertainty remains in corporate IT, but analysts point to signs of stronger demand in the federal and telecommunications markets. Analysts expect Cisco's (CSCO) comments on IT demand to shed light on what's in store for the broader tech industry.
"We think Cisco will be able to deliver at least in-line results, likely at the high end of guide," Wedbush analyst Rohit Chopra said in a note. "Our checks reaffirm what many companies have already reported: slight improvements in spending trends ... against a backdrop of ongoing caution on the broader environment."
Janney Capital analyst Bill Choi said checks show "Cisco capturing a number of large deals that had previously slipped in time for its fiscal year end."
"We believe Cisco benefitted from increasing data center projects among large enterprise customers in the financial, media, and healthcare industries," he wrote.
RBC Capital's Mark Sue said demand in the federal market is "fluid but Europe may show encouraging trends after a multi-period lull."
"Many of the negative issues related to Cisco have subsided," Sue added. "Cisco's core markets are no longer under attack from Huawei, Hewlett-Packard (HPQ) , and Juniper Networks (JNPR) , and Cisco's market shares have rebounded and stabilized. Cisco has also improved its sales execution and refocused its engineering talent."
Cisco is scheduled to post results after Wednesday's closing bell.
Analysts polled by FactSet on average expect Cisco to report a profit of 51 cents a share on revenue of $12.41 billion.
For the year-earlier period, the networking company reported a profit of 47 cents a share, on revenue of $11.69 billion.
-Benjamin Pimentel; 415-439-6400; AskNewswires@dowjones.com
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(END) Dow Jones Newswires
08-14-13 0705ETCopyright (c) 2013 Dow Jones & Company, Inc.
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