ANET Stock: Arista Earnings Blow Past Estimates While Revenue Edges Views

Arista Networks (ANET) reported fourth-quarter earnings that handily beat estimates while revenue slightly beat consensus estimates. Guidance for ANET stock edged by Wall Street targets.

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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 Dec. 31, Arista earnings popped 48% to $2.08 per share. Also, revenue jumped 21% $1.54 billion.

Analysts estimated Arista earnings per share of $1.70 on an adjusted basis with revenue of $1.53 billion. A year earlier, Arista earnings were $1.41 per share on revenue of $1.27 billion.

Guidance For ANET Stock

For the current quarter ending March 31, Arista predicted revenue of $1.54 billion at the midpoint of guidance, flat quarter-over-quarter, edging by estimates of $1.53 billion.

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

On the stock market today, ANET stock fell more than 8% to 257.71.

Also, Arista’s biggest customers are Microsoft (MSFT) and Facebook-parent Meta Platforms (META). Newer customers include Oracle (ORCL)and Google-parent Alphabet (GOOGL).

Artificial Intelligence Upside Expected

Heading into the earnings report, ANET stock had advanced 112% over the past year and 20% in 2024. Arista stock holds a Relative Strength Rating of 96 out of a best-possible 99, according to IBD Stock Check-up.

Arista sells computer network switches that speed up communications in internet data centers. Further, 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.

By 2025, some analysts expect ANET stock to get a boost from customer investments in artificial intelligence infrastructure. Internet data centers will need more computing power and network bandwidth to process AI workloads.

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