CSCO reports their fiscal Q3 tonight after the close (read our preview from yesterday below), the options market is implying about a 6% move this afternoon, vs the avg over the last 4 qtrs of about 7%. The move looks to be priced fair. We concluded yesterday that the stock trading at about the mid-point of the 6 month range appears to be in no mans land, which is basically inline with the sentiment towards the company’s fundamentals. While Q3 likely saw a drop off towards the end of the qtr due to corporations caution towards global growth, the forward guidance is what is likely going to move the stock after the print.
Original Post Nov 12th, 2012: CSCO Q3 Earnings Preview
Event: CSCO reports Q3 earnings Tuesday, November 13th after the market close. The options market is implying about a 6.5% move on earnings, which is quite low relative to the 8-quarter average of 10%, but close to the 4 quarter average around 7%.