Arista Networks Inc. surged in the extended session Monday after the networking company reported second-quarter results that topped Wall Street’s estimates.
Shares of Arista Networks Inc.
rose 7.8% after ending Monday’s session up 0.84%, to $117.61.
The company reported second-quarter net income of $299.1 million, or 94 cents a share, compared with $196.9 million, or 62 cents a share in the year-ago quarter. Adjusted earnings were $1.08 a share, compared with 68 cents a share in the same period last year.
Revenue was $1.052 billion, compared with $707.3 million in the prior year’s quarter. Analysts tracked by FactSet had forecast revenue of $979 million and earnings of 92 cents a share.
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“In Q2 2022, we achieved our first billion-dollar revenue quarter, despite the challenges of an uncertain supply-chain environment,” said Arista Networks CEO Jayshree Ullal, in a statement. “This record milestone further validates the customer value of Arista’s differentiated cloud networking platforms, now adopted by many of the largest cloud and enterprise customers around the world.”
Arista, which has earned a reputation for robust growth rates, gave strong third -quarter guidance, predicting revenue of $1.025 billion to $1.075 billion, topping Wall Street’s estimates. Analysts surveyed by FactSet had forecast sales of $996 million.
Speaking during a conference call to discuss the results, Arista’s Chief Operating Officer Anshul Sadana said that Microsoft Corp.
and Meta Platforms Inc.
are expected to account for 10% of the company’s revenue for the full year.
“You can see that we’re having one of our best years to date in terms of cloud customers,” Ullal said during the call.
The company’s results come at a time when the networking industry is being watched closely for any evidence of a slowdown in business spending. In May, tech bellwether Cisco Systems Inc.
cited the impact of COVID slowdowns in China for a revenue forecast more than $1 billion below Wall Street’s expectations.
Arista shares have fallen 18.5% in 2022, compared to the S&P 500
Index’s decline of 13.6%.