Arista Networks (ANET) reported September-quarter earnings and revenue that handily beat consensus estimates amid large orders from Facebook parent Meta Platforms (META). ANET stock wavered even though the company’s revenue outlook came in above expectations.
The maker of computer networking gear reported earnings after the market close on Monday.
For the three months ended Sept. 30, Arista earnings rose 69% from a year earlier to $1.25 per share, topping estimates of $1.04. Revenue grew 57% to $1.18 billion vs. forecasts for $1.06 billion.
A year earlier, Arista earnings were 74 cents a share on revenue of $749 million.
Arista Stock: High Expectations
For the December quarter, Arista forecast revenue in a range of $1.175 billion to $1.2 billion. Analysts had predicted revenue of $1.09 billion.
ANET stock alternated between modest gains and losses in extended trading on the stock market today. In recent trades, Arista stock dipped 0.6% to 120.18.
High capital spending by Meta Platforms has been a growth driver in 2022. Meta has upped spending on cloud computing infrastructure. Another big customer is Microsoft (MSFT).
While Meta Platforms’ capital spending is expected to stay strong in 2023, overall spending on cloud infrastructure could moderate, analysts say.
Heading into the earnings report for ANET stock, the computer networking firm had a Relative Strength Rating of 87 out of a best-possible 99. But ANET stock has retreated 15% in 2022.
Arista sells switches that speed up communications among racks of computer servers packed into data centers. 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.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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