Cisco (CSCO) is scheduled to report results of its fiscal second quarter after the market closes on February 15 with a conference call scheduled for 4:30 pm ET. What to watch for:

GUIDANCE: Along with its last report, Cisco guided for Q2 adjusted earnings per share of 84c-86c on revenue growth of 4.5%-6.5%. At the time, analysts were guiding for Q2 EPS of 85c on revenue of $13.24B, and while the EPS figure remains the same, the revenue consensus has since risen to $13.43B. Meanwhile, Cisco also in its last report raised its FY23 adjusted EPS view to $3.51-$3.58 from $3.49-$3.56 and raised its revenue growth outlook for the year to 4.5%-6.5% from 4%-6%. Analysts currently expect the company to report FY23 EPS of $3.55 on revenue of $54.54B.

RESTRUCTURING: Cisco also announced with its Q1 report a restructuring plan in order to "rebalance the organization and enable further investment in key priority areas." This rebalancing will include talent movement options and restructuring, the company said. Additionally, Cisco said it will optimize its real estate portfolio, aligned to the broader hybrid work strategy. Cisco will take action under this plan beginning in the second quarter of fiscal 2023, and estimated that it will recognize pre-tax charges to its GAAP financial results of approximately $600M consisting of severance and other one-time termination benefits, real estate-related charges, and other costs. These charges are primarily cash-based. Cisco expects to recognize approximately $300M of these charges in the second quarter of fiscal 2023, approximately $200M of these charges during the second half of fiscal 2023, and the remaining amount of these charges primarily through the first quarter of fiscal 2024.

EVERCORE: Last week, Evercore ISI analyst Amit Daryanani added Cisco to the firm's "Tactical Outperform" list as the firm sees the company being positioned to report and guide "at minimum inline to street expectations, with some upside potential." While investors are "hyper focused" on how Cisco's results could deviate from those of Juniper (JNPR), the analyst said expectations are more tempered at Cisco and noted that it is positioned to drive "not just revenue strength, but also translate that upside to the bottom-line." The firm, which thinks Cisco remains positioned to show accelerating sales and EPS growth in 2023, has an Outperform rating and $58 price target on the Cisco shares.

MORGAN STANLEY: In December, Morgan Stanley analyst Meta Marshall raised the firm's price target on Cisco to $52 from $48 and maintained an Equal Weight rating on the shares as she rolled her valuation forward to calendar year 2024 estimates in conjunction with a 2023 preview note for the North American Telecom & Networking Equipment space. In general for the group, Marshall said she leans cautious until estimates come down, adding that estimate revisions are more likely to come late in the first half as backlogs clear and the demand picture becomes clearer.

CITI: Following Cisco's last earnings report, Citi analyst Jim Suva maintained a sell rating and $44 price target on the shares, saying the sales outlook for growth of 4.5%-6.5% is above the consensus estimate of 4% but the earnings guidance was only in line. Cisco's order growth remained negative at down 14% year-over-year following last quarter at down 6%, said the analyst. He noted that while the orders are impacted by difficult year-over-year comps, Cisco peers Arista (ANET) and Juniper are "navigating the cycle better." The results and outlook "give both bulls and bears ample points, but on the basis of share losses and valuation we continue to rate Cisco as Sell," Suva said at the time.