Arista Networks Shares Stumble Despite Strong Quarterly Results

Arista Networks delivered impressive third-quarter financial performance that surpassed market expectations, yet investors responded by sending the shares down more than 10%. The cloud networking specialist’s cautious outlook for the current quarter overshadowed what would otherwise have been celebrated as record-breaking results.

The company reported outstanding growth for the third quarter, with revenue reaching $2.31 billion—a 27.5% year-over-year increase that exceeded the $2.26 billion analysts had projected. Earnings performance was equally strong, with adjusted earnings per share climbing to $0.75 compared to the $0.72 consensus estimate.

However, management’s fourth-quarter revenue projection of $2.3 to $2.4 billion disappointed market participants. The midpoint of this range at $2.35 billion indicates sequential growth of less than 1%, representing a Read more...