Arista Networks jumps 14% on strong guidance, results
Investing.com | Author Senad Karaahmetovic
Published Aug 01, 2023 06:29AM ET
Arista Networks (ANET) jumps 14% on strong guidance, results
Arista Networks (NYSE:ANET)shares traded as much as 14% higher in pre-market Tuesday after the company reported better-than-expected Q2 results and guidance for this q quarter.
For Q2, Arista reported a profit per share of $1.58 on revenue of $1.46 billion, ahead of the consensus for earnings of $1.44 on revenue of $1.38B. The adjusted gross margin contracted by 60 basis points year-over-year to 61.3%, Arista said.
“Arista again achieves record revenue and profitability for Q2 2023,” said Jayshree Ullal, president and CEO of Arista Networks. “Our customers now represent more than 75 million cumulative cloud networking ports.”
For this quarter, the company sees revenue in the range of $1.45-1.5B, topping the consensus for revenue of $1.39B. The adjusted operating margin is seen at 41%.
Barclays analysts said Arista delivered “a strong beat.”
“ANET had a strong, well rounded quarter. Although the tone around cloud titans took a step back, mgmt still expect double-digit growth for that vertical this year. Enterprise is the standout with share gains in both campus and the data center,” said analysts.
Piper Sandler analysts hiked the price target by $24 to $190 per share.
“Arista remains our preferred networking name and our coverage universe's best A.I play today as infrastructure gets deployed ahead of general use. We're moving our estimates higher, reiterating our OW,” they wrote in a note.
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