Arista Networks (ANET) reported fourth-quarter earnings that exceeded estimates and revenue that was slightly above consensus estimates. The maker of cloud computing network gear reported its results on Monday, stating that earnings per share had increased by 48% to $2.08, with revenue also jumping by 21% to $1.54 billion. Additionally, Arista provided guidance for ANET stock that edged by targets set by Wall Street.
Arista’s biggest customers are Microsoft (MSFT) and Facebook-parent Meta Platforms (META), with newer customers including Oracle (ORCL) and Google-parent Alphabet (GOOGL). Furthermore, analysts expect ANET stock’s revenue growth to slow to 12% in 2024, down from nearly 34% in 2023. ANET stock fell by more than 8% to 257.71 on the stock market today. Heading into the earnings report, ANET stock had advanced 112% over the past year and 20% in 2024, holding a relative strength rating of 96 out of a best-possible 99 according to IBD Stock Check-up.
Arista sells computer network switches that speed up data center communications and is gaining ground in the enterprise market, According to some analysts, by 2025, ANET stock is expected to get a boost from customer investments in artificial intelligence infrastructure, as internet data centers will need more computing power and network bandwidth to process AI workloads. Follow Reinhardt Krause for updates on artificial intelligence, cybersecurity, and cloud computing.
