Arista Networks Inc. (NYSE:ANET) reported better-than-expected second-quarter financial results after markets closed on Tuesday.
Revenues increased 30.4% year over year $2.21 billion, versus estimates of $2.11 billion and the management guidance of $2.1 billion.
Adjusted EPS jumped to 73 cents from 53 cents a year ago, versus estimates of 65 cents. Gross margin was 65.2% in the second quarter.
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Arista’s CFO, Chantelle Breithaupt, said, “Non-GAAP operating income crossed $1 billion for the first time at Arista…”
Arista Networks expects third-quarter sales of $2.25 billion versus the consensus of $2.093 billion.
Analysts’ Reaction
Following the impressive earnings report and upbeat guidance, several prominent financial institutions reiterated their positive stance on Arista Networks. Morgan Stanley maintained an Overweight rating, raising its price forecast from $120 to $125.
Piper Sandler, while holding a Neutral rating, significantly increased its price forecast from $89 to $143. UBS and Goldman Sachs both maintained Buy ratings, lifting their price forecasts from $115 to $155.
Keybanc upheld its Overweight rating, adjusting its price forecast from $115 to $145, while Evercore ISI Group maintained an Outperform rating, raising its forecast from $120 to $150. Needham also maintained a Buy rating, increasing its price forecast from $130 to $155.
Price Action: ANET stock is trading higher by 18.1% to $139.50 at last check Wednesday.
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