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

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Analysts at BMO Capital Markets anticipate the company to report strong results for the quarter and to provide a guidance that is higher than the existing expectations of Wall Street analysts.

Despite challenges Cisco delivered solid performance

Tim Long and Ari Klein, analysts at BMO Capital Markets noted that despite the challenges faced by Cisco Systems, Inc. (NASDAQ:CSCO) over the previous quarters, the networking company delivered consistent solid performances amid the sluggish macro economy. Given the signs of the improving economy, the analysts are confident that Cisco will be able to maintain its performance, and it is well positioned to benefit and meet its target organic revenue growth of 5 percent to 7 percent.

The analysts projected that the shares of Cisco Systems, Inc. (NASDAQ:CSCO) to trade higher on its results, and estimates as well as estimates for the company. Long and Klein said valuations will remain attractive. They are also convinced about future opportunities for growth in data center switching, and expected UCS to benefit from shift to converged infrastructure.

In addition, the flat revenue growth of the other businesses of Cisco Systems, Inc. (NASDAQ:CSCO) are being offset by the good performance of its data center, wireless, and services segments.

Cisco expected to beat consensus estimates

Long and Klein expect that the financial results of Cisco Systems, Inc. (NASDAQ:CSCO) will beat the consensus estimates for the July quarter due to the slowly improving spending in IT enterprise. They also expect its gross margin to go up for the quarter, but the management of the company is expected to provide a conservative guidance at around 4 percent to 7 percent year-over-year growth or approximately $100 million higher than the average expectations.

The analysts estimated the Cisco Systems, Inc. (NASDAQ:CSCO) will post $12.4 billion revenue and $0.51 earnings per share for its fiscal fourth quarter. Its gross margin is expected to be around 62 percent and operating margin at 28.1 percent.

Cisco Systems, Inc. (NASDAQ:CSCO)’s revenue from routers is projected to around $2.1 billion, switches at $3.6 billion, and services at $2.8 billion. For the first quarter of fiscal 2014, the company is expected to achieve $12.4 billion revenue and $0.51 EPS, slightly in line with the consensus estimate.

The analysts recommended an outperform rating for the shares of Cisco Systems, Inc. (NASDAQ:CSCO), and increased their price target for the stock from $27 to $29 per share.