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Arista Networks, Inc. (ANET), headquartered in Santa Clara, California, is a global leader in cloud networking solutions, providing cutting-edge software-driven networking platforms that enable data-driven enterprises to scale and innovate. With a market cap of $146.3 billion, Arista's state-of-the-art technologies are transforming the way businesses connect and operate in an increasingly digital world. The company is set to release its Q4 earnings on Monday, Feb. 10.
Ahead of the event, analysts expect ANET to report a profit of $0.51 per share on a diluted basis, up 10.9% from $0.46 per share in the year-ago quarter. Moreover, it has surpassed Wall Street’s adjusted EPS projections in the past four quarters.
ANET reported an adjusted EPS of $0.57 in the most recent quarter, missing the consensus estimates by 21.3%. Arista Networks exceeded expectations, driven by strong demand for its cloud networking solutions.
In fiscal 2024, analysts expect ANET to report a profit of $1.97, up 28.8% from $1.53 in fiscal 2023. However, in fiscal 2025, EPS is expected to rebound, growing by 10.7% year-over-year to $2.18.
Arista Networks’ shares have gained 84.3% over the past 52 weeks, significantly outperforming the broader S&P 500 Index's ($SPX) 24.4% gains and the Technology Select Sector SPDR Fund's (XLK) 20.8% returns over the same time frame.
Arista Networks has outperformed both the broader market and its peers, driven by strong revenue growth, consistent earnings beats, and robust performance in the cloud networking space, fueled by rising demand for high-performance networking solutions. Despite reporting a 7.1% year-over-year revenue increase to $1.81 billion in its Q3 earnings, exceeding the $1.76 billion estimate, Arista's shares fell 7.1% on Nov. 7. Looking ahead to Q4 2024, the company forecasts revenue between $1.85 billion and $1.90 billion, with non-GAAP gross margin of 63%-64% and non-GAAP operating margin around 44%.
Analysts’ consensus opinion on ANET stock is cautiously bullish, with a “Moderate Buy” rating overall. Out of 19 analysts covering the stock, 13 advise a “Strong Buy” rating, one gives a “Moderate Buy” rating, four suggest a “Hold,” and one recommends a “Strong Sell.” The average analyst price target for ANET is $94.99, which indicates that the stock trades at a premium.
