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Arista Stock Jumps. Strong Demand for the Cloud Boosted Earnings.Arista Stock Jumps. Strong Demand for the Cloud Boosted Earnings. Barron's (Online); New York Arista Networks posted better-than-expected second-quarter financial results, as the networking hardware company continued to benefit from aggressive infrastructure spending by cloud and enterprise data center customers. In premarket trading Tuesday, Arista shares were 5.4% higher at $124. Monday evening, Arista (ticker: ANET) posted revenue of $1.052 billion for the quarter, up 49% from a year ago, and 20% above the first-quarter level. Arista had been projecting revenue of $950 million to $1 billion, and the Street consensus had been $976 billion. Non-GAAP profits were $1.08 a share, above the Street at 91 cents. Non-GAAP gross margin of 61.2% was consistent with the company's guidance range of 60% to 62%. On a GAAP basis, the company earned 94 cents a share. In a statement, Arista CEO Jayshree Ullal said the strong performance was "despite the challenges of an uncertain supply chain environment. She added that the company's hardware has now been adopted "by many of the largest cloud and enterprise customers around the world." Arista is projecting third-quarter revenue of $1.025 billion to $1.075 billion, above the Street consensus at $1 billion. The company again expects non-GAAP gross margin in the 60% to 62% range. The outlook is consistent with upbeat comments last week from the key cloud-computing companies—Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOGL)—which projected continued strong demand despite the current macroeconomic uncertainty. |
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