NEW YORK (CNN/Money) -
Investors will watch to see whether Cisco Systems' financial results will revive or dampen market sentiments Wednesday after all three major Wall Street indexes finished nearly unchanged Tuesday.
After the closing bell Tuesday, Cisco Systems (CSCO: Research, Estimates) said it expects revenue in its current fiscal third quarter to rise slightly from the previous quarter as demand continues to tick up.
Chief Executive John Chambers said during a conference call to discuss Cisco's second-quarter results that sales will rise 1 to 3 percent from the $5.4 billion in the previous quarter.
That guidance implies revenue of $5.45 billion to $5.56 billion.
Analysts currently expect Cisco to post a third-quarter profit before one-time items of 18 cents a share, on average, on sales of $5.38 billion, according to Reuters Research.
But Cisco shares fell as investors appeared to be disappointed by the lower quarterly profit.
In after-hours trading, Cisco shares fell to $26.02 on the Instinet electronic brokerage system from their Nasdaq close at $26.41. During regular trading, Cisco gained 21 cents.
Drugmaker Icos Corp. (ICOS: Research, Estimates) also reported earnings after the closing.
The company, which co-markets the new impotence treatment Cialis with Eli Lilly & Co. (LLY: Research, Estimates), said its fourth-quarter loss narrowed on worldwide sales of the drug that was approved in the United States in November.
But Icos forecast a larger 2004 loss than analysts had expected, knocking its shares down in after-hours trading.
The wider projected loss is due to the massive marketing cost Icos will share with Lilly to launch Cialis in the United States.
That effort began in earnest on Sunday with a Cialis commercial and sponsorship during the Super Bowl, where a 30-second spot cost about $2.3 million.
The Cialis campaign, which includes television, radio and print ads, will continue throughout 2004, a Lilly spokesman said recently.
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Cialis , which boasts 36 hours of effectiveness compared to 4-5 hours for Viagra from Pfizer (PFE: Research, Estimates), is expected to grab a significant share of the multibillion-dollar erectile dysfunction market, analysts said.
In after-hours trading, shares of Icos fell to $41.24 from $43 of Tuesday's close.
Earnings reports scheduled for release on Wednesday include ones from Northrop Grumman (NOC: Research, Estimates), Oxford Health (OHP: Research, Estimates) and Anheuser-Busch (BUD: Research, Estimates). Upscale fashion designers Polo Ralph Lauren (RL: Research, Estimates) and Tommy Hilfiger (TOM: Research, Estimates) will also show off their quarterly results.
Investors will also keep an eye on some big-name earnings due later this week. EDS (EDS: Research, Estimates) is due Thursday, while Cigna (CI: Research, Estimates) and Ericsson (ERICY: Research, Estimates) are scheduled for release on Friday.
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