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With a market cap of $105.5 billion, Arista Networks, Inc. (ANET) specializes in cloud networking solutions for data centers and cloud computing environments across various sectors globally. Based in Santa Clara, California, the company is expected to announce its fiscal Q2 earnings results after the market closes on Tuesday, Jul. 30.
Ahead of this event, analysts expect the data-center switch company to report a profit of $1.72 per share, up around 22% from $1.41 per share in the previous year's quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters. In the most recent quarter, the company reported an EPS of $1.80, exceeding the consensus estimate by 15.4% due to strong demand for its Ethernet switches and routers.
For fiscal 2024, analysts expect ANET to report EPS of $7.06, up 15.4% from $6.12 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 12.9% annually to $7.97.
On a YTD basis, ANET surged nearly 43.7%, outperforming both the S&P 500 Index's ($SPX) 17.4% rise and the S&P 500 Technology Sector SPDR's (XLK) 17% gain over the same period.
Following the company’s better-than-expected Q1 financial results, Arista Networks' stock rallied 6.5% on May 8, primarily due to a strong Q2 revenue forecast fueled by anticipated demand for its cloud networking gear driven by AI applications. Plus, the stock surged 6.5% on Jun. 13 due to an upward revision of its price target by Morgan Stanley (MS) and reaffirmation of its "overweight" rating, reflecting confidence in Arista's leadership in the AI networking market.
Analysts' consensus rating on Arista Networks' stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 23 analysts covering the stock, opinions include 15 "Strong Buys," two "Moderate Buys," five "Holds," and one "Strong Sell."
This consensus is slightly more bullish than three months ago, with 14 analysts suggesting a "Strong Buy." The average analyst price target of $335.40 suggests a marginal potential upside from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
