Cisco Systems, Inc. (NASDAQ:CSCO) will deliver its third quarter earnings report on May 14. Owing to lower spending by service providers and weakness in the emerging markets, the company is expected to post low numbers with revenues forecast to decline by 6-8% compared to the same quarter last year.

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Analysts more bullish in last three months

For the third quarter, non-GAAP EPS is expected to come in at $0.48. In the last four quarters, the company has beaten the estimates by 1-2 cents. Revenue is expected to come in at $11.38 billion. In the last six months, insiders have offloaded 3,139,480 Cisco Systems, Inc. (NASDAQ:CSCO) shares. In November, the networking giant came up with a $15 billion buyback plan, and in February sold $8 billion in bonds to finance repurchases. The decline in the company’s revenue is expected to turn around in fiscal year 2015. Analysts have been more bullish on Cisco over the last three months, marginally raising the consensus earnings estimate.

New products initial bookings for Cisco Systems, Inc. (NASDAQ:CSCO) have been encouraging. Bookings for the Nexus 9000, in its first shipping quarter, almost tripled since the start of the quarter. The company also announced important new customers including Telstra, KDDI and BSkyB. Cisco expects orders from for its core routers, NCS and CRS-X, to rise significantly towards the second half of 2014.

Cisco faced similar concerns last quarter

Last quarter’s results were also marred by the similar concerns and revenues declined 8% year over year. The networking giant blamed the lower revenue on the uncertain macro environment, which resulted in a 3% decline of orders from emerging markets, while orders from service providers were down 12% primarily due to the shift of product transitions in core routing and switching. Performance in China was not at all impressive owing to the uncertain political environment following the NSA revelations last year.

In emerging markets like China, India and Brazil, where clients are lowering their spending to adjust the currency fluctuations and other factors, Cisco Systems, Inc. (NASDAQ:CSCO) is facing an adverse business environment. In the second quarter, orders from BRIC and Mexico registered a decline of 10% compared to the same period last year. In China,  orders also fell by 8% from the same quarter last year.

On Tuesday, Cisco shares were down 1.42%, to close at $22.86.