Arista Networks Inc. met expectations with its revenue outlook Monday while delivering an earnings beat for the most recent quarter, but its stock was pulling back in the extended session.
The networking giant projects $1.52 billion to $1.56 billion in revenue for the ongoing quarter, while analysts tracked by FactSet were modeling $1.53 billion on the top line. Arista
ANET,
executives also foresee a 62% gross margin, while the consensus view implied expectations for a 63% gross margin.
The stock was off about 6% in after-hours action Monday. It’s gained 36% over a three-month span and 111% over a 12-month period.
In the fourth quarter, Arista logged net income of $613.6 million, or $1.92 a share, compared with net income of $427.1 million, or $1.35 a share, in the year-prior period. On an adjusted basis, Arista posted earnings per share of $2.08, up from $1.41 a year before and above the $2.08 FactSet consensus.
Revenue came in at $1.54 billion, up about 2% from a year earlier. Analysts had been looking for $1.53 billion.
“We are cautiously optimistic about achieving our AI revenue goal of at least $750 million in AI networking in 2025,” Chief Executive Jayshree Ullal said on the earnings call.
Networking rival Cisco Systems Inc.
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posts quarterly results Wednesday afternoon.
