Arista Networks
stock jumped in late trading after the provider of networking equipment posted better-than-forecast results for the September quarter.
Arista (ticker: ANET) reported revenue of $1.51 billion, up 28% from a year ago, and ahead of both the company’s forecast range of $1.45 billion to $1.5 billion and the consensus call for $1.48 billion among analysts tracked by
FactSet.
The stock was 4.2% higher at $175.72.
Adjusted profits were $1.83 a share, well above the consensus call for $1.58. Non-GAAP operating margin was 63.1%, beating the 62% management had forecast. Under generally accepted accounting principles, Arista earned $1.72 a share.
The company said that momentum in the quarter “remained strong” from both enterprise customers and from cloud and artificial-intelligence companies.
Arista generates about half of its revenue from
Microsoft
(MSFT) and
Meta Platforms
(META), so its stock came under selling pressure last week after Meta’s initial guidance on 2024 capital spending turned out to be more conservative than some investors had expected.
That spurred worries about the company’s financial outlook, but if there are any looming issues, they didn’t materialize in the third quarter.
For the December quarter, Arista projects revenue of $1.5 billion to $1.55 billion, ahead of the consensus call for $1.47 billion. Management also expects adjusted gross margin to expand to 63%.
Arista said it now sees full year revenue growth of more than 33%, up from a previous target of more than 30%.
Write to Eric J. Savitz at eric.savitz@barrons.com
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