Cisco Systems, Inc. (NASDAQ:CSCO) is scheduled to report its fourth quarter financial results for the current fiscal year after the closing of the market on Wednesday, August 14, 2013.

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Analysts at BMO Capital Markets projected that the company will deliver strong results and a slight upside to guidance as the company continues to execute its business well.

According to BMO Capital Markets analysts Tim Long and Ari Klein, the enterprise spending backdrops of Cisco Systems, Inc. (NASDAQ:CSCO) is improving based on their checks. They also believe that the company’s service provider spending will remain strong until the end of the year.

Cisco awarded Outperform rating by analysts

Long and Klein believe that one of the potential concerns that could weigh on the guidance of Cisco Systems, Inc. (NASDAQ:CSCO) is the weaker federal spending. However, the analysts said, “We believe that any weakness will be more than offset by strength in other verticals.” The analysts anticipated that the estimates for the company will move higher and they said its valuation remains attractive.

The analysts estimated that Cisco Systems, Inc. (NASDAQ:CSCO) will deliver $0.51 earnings per share on $12.4 billion revenue for FY4Q13. Long and Klein projected that the gross margin of the company will be 62% and op margins at 28.1%. In addition, the analysts estimated that its revenue from routers will be about $2.1 billion (flat Y/Y), switches $3.6 billion (flat Y/Y) and services $2.8 billion (+9% Y/Y).

For the first quarter of fiscal 2014, Long & Klein projected that Cisco Systems, Inc. (NASDAQ:CSCO) will be able generate $0.51 earnings per share on $12,4 billion revenue, in line with the consensus estimates.

BMO Capital Research recommended an Outperform rating and $29 price target for the shares of Cisco Systems, Inc. (NASDAQ:CSCO).

On the other hand, analysts at Wedbush Equity Research maintained their Outperform rating and $28 price target for the stock due to the valuation, strategic direction, and market share gains of Cisco Systems, Inc. (NASDAQ:CSCO).

Cisco ‘well positioned’ with strong software and service sales

According to Wedbush Equity Research analysts Rohit Chopra, Ryan Flanagan, and Sanjit Singh, the company remained well positioned to overcome any uncertainties in spending. They believe that Cisco Systems, Inc. (NASDAQ:CSCO) has the ability to outperform the sector given its history in navigating challenging situations.

The analysts said, “We think the increasing use of software and a push into services creates the potential for margin enhancement in the model.”

Chopra, Flanagan, and Singh projected that Cisco Systems, Inc. (NASDAQ:CSCO) will deliver in-line results at the high-end of the guidance. They estimated that the company will generate $0.52 earnings per share on $12.5 billion revenue. For the full fiscal 2013, the company is expected to deliver $2.01 earnings per share on $48.6 billion revenue.