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Arista Q4 Earnings and Revenue Beat Estimates; Issues Guidance

Arista Networks (ANET) delivered better-than-expected fourth-quarter and full-year results characterized by its first billion-dollar cash flow year. Revenue and earnings came in above consensus estimates as the company shrugged off industry-wide challenges. ANET shares rose 1.57% to close at $122.82 on February 14.

Arista Networks is a U.S. computer networking company that develops, markets, and sells cloud networking solutions. Arista Networks’ upcoming earnings report for Q1 2022 is scheduled for May 05, 2022.

Financial Results

Revenue in the fourth quarter was up 10.1% sequentially and 27.1% year-over-year to $824.5 million, beating consensus estimates of $789.1 million. Full-year revenue was up 27.2% year-over-year to $2.95 billion.

Non-GAAP net income increased to $262.4 million from $197.7 million in the same quarter last year. Consequently, Arista posted diluted earnings per share of $0.82, an improvement from $0.62 in the same quarter last year and better than consensus estimates of $0.73. Full-year non-GAAP net income totaled $915 million or $2.87 a share.

Arista Networks expanded its extensible operating system for data-driven cloud networking during the quarter. It also expanded 400G for enterprise and cloud customers.

Arista expects first-quarter revenue to range between $840 million and $860 million, with a non-GAAP gross margin of between 63% and 64%.

Stock Rating

Last Week, Evercore ISI analyst Amit Daryanani reiterated a Buy rating on Arista Networks with a $160 price target, implying 30.27% upside potential to current levels.

Consensus among analysts is a Strong Buy based on 10 Buys and 3 Holds. The average Arista Networks price target of $148.18 implies 20.65% upside potential to current levels.

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