Arista Networks (ANET) on Tuesday reported second-quarter earnings and revenue that topped analyst estimates. Arista stock initially fell then reversed up.
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The maker of cloud-computing network gear reported Arista earnings after the market close. The Nasdaq composite member slipped 1.3% in Tuesday’s regular session.
For the three months ended June 30, Arista earnings popped 33% to $2.10 per share on an adjusted basis. Also, revenue rose 16% to $1.69 billion. Sales growth decelerated for the sixth straight quarter.
Analysts estimated earnings per share of $1.94 on revenue of $1.656 billion. A year earlier, Arista earnings were $1.58 a share on revenue of $1.46 billion.
Revenue Guidance For Arista Stock
For the current quarter ending Sept. 30, Arista predicted revenue in a range of $1.72 billion to $1.75 billion, topping estimates of $1.73 billion.
On the stock market today, Arista stock initially fell nearly 4% in extended trading then clawed back. Arista stock rose more than 2% to 318 in late trades. In Tuesday’s regular session, shares fell 2.8%.
Heading into the earnings report, Arista stock had advanced nearly 34% in 2023. But Arista is down from a 52-week high of 376.50 set on July 9.
Also, Arista’s biggest customers are Microsoft (MSFT) and Facebook-parent Meta Platforms (META). According to analysts, Arista is gaining ground in the so-called “enterprise” market — large companies, government agencies and educational institutions.
Arista sells computer network switches that speed up communications in internet data centers. Its chief rivals are Cisco Systems (CSCO) and Juniper Networks (JNPR).
In 2025, Arista has projected $750 million in artificial-intelligence-related revenue. Internet data centers will need more computing power and network bandwidth to process AI workloads.
Meanwhile, Arista is among AI stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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