For Cisco’s second quarter of fiscal 2023, analysts expect revenue of $13.41 billion, a decrease of 1.6% sequentially but up 5.4% year over year. Adjusted EPS are forecast at $0.86, down 0.6% sequentially and up two cents year over year. For the full fiscal year ending in July, analysts anticipate EPS of $3.55, up 5.6%, on revenue of $54.5 billion, up about 5.7%.
Cisco’s stock trades at a multiple of 13.5 times expected 2023 EPS, 12.5 times estimated 2024 earnings of $3.84 and 11.9 times estimated 2025 earnings of $4.03 per share. The stock’s 52-week range is $38.60 to $57.69. Cisco pays an annual dividend of $1.52 (yield of 3.22%). Total shareholder return over the past year was negative 8.23%.
Energy Transfer
Natural gas pipeline and infrastructure company Energy Transfer LP (NYSE: ET) has added nearly 26% to its share price over the past 12 months. For the year to date, the common units are up 9.1%.
Like many pipeline operators, Energy Transfer is a master limited partnership (MLP) that pays a generous distribution to unitholders and is mostly shielded from commodity price movements because the bulk of the company’s capacity is contracted. The company raised its quarterly dividend by 15% last month, pushing its dividend yield above 9%, and returned the payment to its pre-pandemic level.
Free cash flow in the prior quarter came to $2.28 billion, while dividend payments totaled $774 million. The company issued $7.6 billion in new debt in the third quarter and repaid almost $8.3 billion. Over the past 12 months, the company has repaid $30.6 billion in debt, issued $28.8 billion in new debt, posted free cash flow of $6.18 billion, and paid almost $2.1 billion in interest.
Analysts are solidly bullish on Energy Transfer, with all 18 brokerages covering the stock having a rating of Buy or Strong Buy. At a share price of around $13.00, the upside potential based on a median price target of $16.50 is 26.9%. At the high price target of $21.00, the upside potential is 38.1%.
For the fourth quarter, analysts expect the company to report revenue of $23.81 billion, up 3.8% sequentially and by 27.6% year over year. Adjusted EPS are expected to come in at $0.32, down 7.5% sequentially but up two cents year over year. For the full 2022 fiscal year, EPS are forecast at $1.43, down 25.3%, on sales of $91.16 billion, up 35.2%.
The common units trade at 9.1 times expected 2022 EPS, 8.8 times estimated 2023 earnings of $1.48 and 7.9 times estimated 2024 earnings of $1.63 per share. Energy Transfer’s 52-week range is $9.15 to $13.67. The company pays an annual distribution of $1.22 (yield of 9.42%). Total shareholder return for the past year was 36.58%.
Originally published at 24/7 Wall St.
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