Arista Networks (ANET) reported third-quarter earnings and revenue that topped analyst estimates amid investor angst over 2024 capital spending plans of key customers. ANET stock rose on the Q3 results.
X
The maker of cloud computing network gear reported its results after the market close on Monday.
For the three months ended Sept. 30, Arista earnings popped 46% to $1.83 per share. Also, revenue jumped 28% to $1.51 billion.
Analysts estimated EPS of $1.58 on revenue of $1.48 billion. A year earlier, Arista earnings were $1.25 a share on revenue of $1.18 billion.
Sales Guidance For ANET Stock
For the current quarter ending Dec. 31, Arista predicted revenue in a range of $1.50 billion to $1.55 billion, topping estimates of $1.47 billion.
On the stock market today, ANET stock rose 2.7% to 180.55 in extended trading.
Also, Arista’s biggest customers are Microsoft (MSFT) and Facebook-parent Meta Platforms (META). Arista stock fell last week after Meta reported Q3 earnings and gave initial guidance on 2024 capital spending.
Heading into the earnings report, ANET stock had advanced nearly 45% in 2023.
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. Internet data centers will need more computing power and network bandwidth to process AI workloads.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
YOU MIGHT ALSO LIKE:
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
Learn How To Time The Market With IBD’s ETF Market Strategy
How To Use The 10-Week Moving Average For Buying And Selling
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
