Arista earnings beat expectations, while revenue edged up by views

Arista Networks (Arnett) reported fourth-quarter earnings that handily beat estimates, while revenue was slightly ahead of consensus estimates. ANET stock guidance was influenced by Wall Street targets.


The maker of cloud-computing networking equipment reported results after the close on Monday.

In the three months ended Dec. 31, Arista’s earnings jumped 48% to $2.08 per share. Additionally, revenue surged 21% to $1.54 billion.

Analysts expected Arista to post adjusted earnings of $1.70 per share on revenue of $1.53 billion. In the same period last year, Arista’s earnings per share were $1.41 and revenue was $1.27 billion.

ANET Stock Guide

For the current quarter ending March 31, Arista expects revenue of $1.54 billion, in the mid-point of guidance, flat sequentially and slightly below expectations of $1.53 billion.

Analysts expect ANET stock’s revenue growth to slow to 12% in 2024 from nearly 34% in 2023.

superior Today’s stock marketANET shares fell more than 8% to 257.71.

Additionally, Arista’s largest customer is Microsoft (Microsoft Corporation) and Facebook-parent meta platform (Mehta). New customers include Oracle (ORCL) and the Google parent letter (Google).

The expected growth space of artificial intelligence

Heading into the earnings report, ANET stock was up 112% over the past year and 20% higher in 2024. Arista stock has a Relative Strength Rating of 96 out of a high of 99, according to Arista data IBD inventory check.

Arista sells computer network switches that speed communications in network data centers.Furthermore, its main competitors are Cisco Systems (China Association for Science and Technology) and Juniper Networks (National Public Radio).

According to analysts, Arista is carving out a niche in the so-called “enterprise” market (large companies, government agencies and educational institutions).

Some analysts expect that by 2025, ANET stock will benefit from customer investments in artificial intelligence infrastructure, and network data centers will require more computing power and network bandwidth to handle artificial intelligence workloads.

Follow Reinhardt Krause on X (formerly Twitter), @reinhardtk_tech Learn about the latest developments in artificial intelligence, cybersecurity, and cloud computing.

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