Arista Networks (ANET) reported fourth-quarter earnings and revenue after the close Monday that topped Wall Street estimates. Shares of Arista stock surged as revenue guidance for the current March quarter topped expectations.
Arista stock jumped 9.8% to 134.80 in extended trading on the stock market today.
For the three months ended Dec. 31, Arista earnings rose 32% from a year earlier to 82 cents per share, topping estimates of 74 cents. Revenue grew 27% to $824.5 million, beating forecasts for $790 million.
A year earlier, Arista earnings were 62 cents on revenue of $648 million.
Arista Stock: Guidance Tops Expectations
For the March quarter, Arista said it expects revenue of $850 million at the midpoint of guidance. Analysts had predicted revenue of $833 million. Arista also forecasts adjusted operating margin of 38%, down a bit from 39.3% in the December quarter.
Heading into the ANET earnings report, the computer networking stock had a Relative Strength Rating of 94 out of a best-possible 99.
Arista sells switches that speed up communications among racks of computer servers packed into data centers. Arista’s primary customers have been internet companies.
Analysts expect higher capital spending by Facebook-parent Meta Platforms (FB) to be a growth driver in 2022.
Gaining Traction In Enterprise Market
Also, Arista is gaining traction in the enterprise market — large companies, government agencies and medical institutions.
A rival of Cisco Systems (CSCO), Arista Networks in November announced a 4-for-1 stock split. The company also announced a $1 billion stock buyback program.
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