Arista Networks shares were slightly lower in late trading Monday after the networking infrastructure provider posted better-than-expected second quarter results.
For the quarter, Arista (ticker: ANET) reported revenue of $707.3 million, up 31% from a year ago, and ahead of both the company’s guidance range of $675 million to $695 million and Wall Street consensus at $687 million. Non-GAAP profits were $2.72 a share, above the consensus at $2.54 a share, and up from $2.11 a share a year ago. Under generally accepted accounting principles, the company earned $197 million, or $2.47 a share. Non-GAAP gross margin was 65.2%, above the company’s projected range of 63% to 65%.
For the September quarter, Arista is projecting revenue of $725 million to $745 million, which is above the Street at $697 million. The company again projects non-GAAP gross margin ibn the 63% to 65% range.
“Our record second quarter reflects continued momentum and diversification across our top verticals and product-lines,” Arista CEO Jayshree Ullal said in a statement. “We are on the cusp of network software and data-driven transformation and look forward to delighting many more customers.” The chief financial officer, Ita Brennan, added that the company “continued to work with customers and partners to navigate a challenging supply environment.”
There’s no clear reason for the market’s lukewarm reception to the numbers, other than Brennan’s comment alluding to the tight environment for components. Arista shares, which were up 30% for the year to date through the end of Monday’s regular session, have slipped 0.5% to $375.48 in late trading.
Write to Eric J. Savitz at [email protected]
