Arista Networks First-Quarter Results Top Estimates Amid High Expectations


Arista Networks (ANET) reported first-quarter earnings and revenue that topped analyst estimates amid high expectations for ANET stock. Arista stock fell on the news.




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The maker of cloud computing network gear reported its results after the market close on Monday.

For the three months ended March 31, Arista earnings surged 70% to $1.43 per share, topping estimates of $1.35 per share. Revenue jumped 54% to $1.35 billion vs. forecasts for $1.31 billion.

A year earlier, Arista earnings were 84 cents a share on revenue of $877 million.

Sales Guidance For ANET Stock

For the June quarter, Arista predicted revenue in a range of $1.35 billion to $1.4 billion, topping estimates of $1.35 billion.

ANET stock fell 3.2% to near 155 in extended trading on the stock market today.

Analysts expect sales growth to slow moderately in 2024 and 2025. That has raised questions over the valuation of ANET stock.

Heading into the earnings report, ANET stock had advanced nearly 32% in 2023. Arista’s biggest customers are Microsoft (MSFT) and Facebook-parent Meta Platforms (META).

Arista sells switches that speed up communications among racks of computer servers packed into data centers. Its chief rivals are Cisco Systems (CSCO) and Juniper Networks (JNPR).

According to analysts, Arista is gaining ground in the so-called “enterprise” market — large companies, government agencies and educational institutions.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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