Can Healthy Top-Line Growth Drive Arista (ANET) Q3 Earnings?
Zacks Investment Research | Oct 29, 2019 07:31AM ET
Arista Networks, Inc. (NYSE:ANET) is scheduled to report third-quarter 2019 results after the closing bell on Oct 31. In the last reported quarter, the company delivered a positive earnings surprise of 9.9%, surpassing the Zacks Consensus Estimate by 22 cents. For the third quarter, the company is likely to have generated higher consolidated revenues on a year-over-year basis, supported by a healthy growth trajectory.
Factors at Play
During the quarter, Arista secured a contract from SYNNEX Corporation – a leading business process services firm – to address the burgeoning demand for large-scale networking solutions in the IT channel. This is likely to have boosted the company’s revenues in the quarter.
As part of its cognitive management plane framework, Arista also launched CloudVision 2019 during the quarter. This software platform is designed to bring cloud network operations to enterprise customers through automation, telemetry, and analytics solutions, thereby helping clients to reduce operational costs, manage risks and improve network agility. This is likely to have generated additional revenues for the company in the third quarter.
With solid demand for data center switches and continued spending on IT infrastructure products for deployment in cloud environments, Arista is likely to to have recorded healthy rise in revenues. The company expects third-quarter revenues in the range of $647 million to $657 million. The Zacks Consensus Estimate for the same is pegged at $653 million, indicating a 16% improvement from the year-ago reported number. The consensus estimate for earnings is currently pegged at $2.44 per share, up from $2.11 reported in the year-earlier quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Arista in the third quarter. The combination of a positive Earnings ESP Filter .
Arista Networks, Inc. Price and EPS Surprise
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