Latest news with #AristaNetworks'
Business Insider
5 days ago
- Business
- Business Insider
Arista Networks Stock (ANET) Soars 18% and Hits All-Time High After Earnings
Arista Networks (ANET) stock is up 18% and at an all-time high of $139.50 after the computer networking company reported strong quarterly financial results. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Silicon Valley-based Arista Networks reported a solid second-quarter print, with the company's revenue reaching $2.2 billion and earnings per share of $0.73. Both the top and bottom line numbers surpassed Wall Street forecasts. Profit was up 30% year-over-year, while sales rose 38% from a year ago. Arista Networks also raised its guidance, saying it now expects Fiscal 2025 revenue growth of 17% to 25% from a year earlier. For the current quarter ending Sept. 30, Arista forecasts revenue of $2.25 billion at the midpoint of guidance, surpassing estimates of $2.12 billion. Analyst Upgrades The beat and raise quarter has led a slew of analysts on Wall Street to revise up their ratings and price targets on ANET stock. Needham raised its price target for Arista Networks' shares to $155 and maintained a Buy rating on the stock. Goldman Sachs (GS) reiterated its Buy rating with the same $155 price target. JPMorgan Chase (JPM) increased its price target to $150 and issued a Buy rating. Arista Networks is seen as a big beneficiary of the artificial intelligence (AI) data center boom. The company sells computer network switches that speed up communications in data centers. Arista Networks' two biggest customers are Microsoft (MSFT) and Meta Platforms (META), with demand from those two technology giants growing. ANET stock is now up 26% on the year. Is ANET Stock a Buy? The stock of Arista Networks has a consensus Strong Buy rating among 21 Wall Street analysts. That rating is based on 17 Buy and four Hold recommendations issued in the last three months. The average ANET price target of $131.35 implies 5.16% downside risk from current levels. These ratings could change after the company's latest financial results.
Yahoo
07-05-2025
- Business
- Yahoo
Arista's Sales, EPS Surge; Stock Slumps
Key Points Arista saw solid growth in revenue and earnings during the first quarter, with quarterly sales topping the $2 billion mark for the first time. CEO Jayshree Ullal noted that artificial intelligence, cloud computing, and enterprise customers are playing key roles in driving Arista's success. The move lower for the stock seemed to stem from a wish for even better performance and guidance for the second quarter. 10 stocks we like better than Arista Networks › Here's our initial take on Arista Networks' (NYSE: ANET) first-quarter financial report. Key Metrics Metric Q1 2024 Q1 2025 Change vs. Expectations Total revenue $1.57 billion $2.00 billion +28% Beat Adjusted earnings per share $0.50 $0.65 +30% Beat Adjusted gross margin 64.2% 64.1% -0.1 pp n/a Adjusted operating margin 47.4% 47.8% +0.4 pp n/a Arista Reaches a Milestone Arista's first-quarter financial report was cause for celebration as far as the company was concerned. Revenue inched just above $2 billion for the first time ever, growing 28% from the same period a year earlier. Solid margin performance helped the company boost its adjusted earnings to $0.65 per share, 30% higher than in the year-earlier period. AI and other technological advances played their part in pushing Arista higher. The company highlighted its recent advanced AI capabilities to help make AI-enhanced networks more productive, ensuring reduced latency, better troubleshooting, and maximized workload performance. Just about the only potential negative was in Arista's guidance. Revenue of $2.1 billion would be slightly higher than what most investors were looking to see. However, calls for gross margin and operating margin to decline slightly from first-quarter levels might have been a disappointment. Immediate Market Reaction Perhaps because of that guidance, shares of Arista fell about 7% in the first hour of trading following the release of the report in Tuesday's after-hours trading session. Given that the stock hasn't performed terribly well during 2025 on the whole, many investors would have hoped for a more positive response to the results. Indeed, CFO Chantelle Breithaupt lauded Arista's strong business execution in generating such good performance. What to Watch It's consistent with Arista's view that the share price isn't fairly reflecting the company's potential that the volume of stock buybacks has risen substantially. Breithaupt noted that the $787 million in repurchases in the first quarter marked the highest level of stock repurchases in Arista's history. Moreover, the Arista board authorized another $1.5 billion for future buybacks. That could open the door for even more repurchase activity going forward -- particularly if the stock keeps losing ground despite what Arista sees as good long-term prospects for the business.
Yahoo
13-04-2025
- Business
- Yahoo
Arista Networks (NYSE:ANET) Appoints Greg Lavender To Board Of Directors
Arista Networks has seen a notable price move of 13% over the past week, coinciding with recent changes in its executive ranks and board composition. The appointment of Greg Lavender to its Board of Directors and the forthcoming transition of Chief Platform Officer John McCool to a senior advisory role may have added weight to the company's upward movement, aligning with the broader market's 5% climb. These strategic leadership shifts underline a focus on strengthening technical oversight and maintaining stability, potentially supporting the company's trajectory amid a positive market environment. Be aware that Arista Networks is showing 1 risk in our investment analysis. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 21 best rare earth metal stocks of the very few that mine this essential strategic resource. The recent executive changes at Arista Networks, including Greg Lavender's board appointment and John McCool's transition to an advisory role, could enhance the company's technical oversight, potentially influencing its revenue and earnings forecasts positively. These leadership shifts may provide Arista with strengthened capabilities in guiding its expansion in Ethernet technology and AI-driven solutions. As the company eyes increased revenues from 800-gigabit Ethernet technology and AI centers, the leadership changes may bolster its strategic initiatives amid a competitive and rapidly evolving market landscape. Over the past five years, Arista Networks achieved a total shareholder return of nearly 454%, reflecting substantial long-term growth, notably in the data-driven networking sector. This impressive performance contrasts with its recent 1-year underperformance against the US Communications industry, which returned 18.4%. Despite the short-term lag, the stock's long-term gains signify its robust position in the market. With the stock price at US$68.17, Arista Networks trades at a discount to its optimistic price target of US$133.37, which suggests a potential for price appreciation. Additionally, strong deferred revenue and active stock repurchase programs indicate a focus on enhancing shareholder value. However, challenges such as competitive pressures, tariff impacts, and potential delays in AI switch rollouts could influence earnings and revenue projections. Meanwhile, bullish analysts project revenue to reach US$14.30 billion by 2028, requiring a higher PE ratio compared to its current level, posing both opportunities and risks for investors to consider. Review our growth performance report to gain insights into Arista Networks' future. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:ANET. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
16-02-2025
- Business
- Yahoo
Arista Networks (NYSE:ANET) Is Aiming To Keep Up Its Impressive Returns
What are the early trends we should look for to identify a stock that could multiply in value over the long term? Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. That's why when we briefly looked at Arista Networks' (NYSE:ANET) ROCE trend, we were very happy with what we saw. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Arista Networks, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.27 = US$2.8b ÷ (US$13b - US$2.4b) (Based on the trailing twelve months to September 2024). Therefore, Arista Networks has an ROCE of 27%. That's a fantastic return and not only that, it outpaces the average of 13% earned by companies in a similar industry. See our latest analysis for Arista Networks In the above chart we have measured Arista Networks' prior ROCE against its prior performance, but the future is arguably more important. If you're interested, you can view the analysts predictions in our free analyst report for Arista Networks . In terms of Arista Networks' history of ROCE, it's quite impressive. The company has employed 239% more capital in the last five years, and the returns on that capital have remained stable at 27%. Returns like this are the envy of most businesses and given it has repeatedly reinvested at these rates, that's even better. If Arista Networks can keep this up, we'd be very optimistic about its future. In short, we'd argue Arista Networks has the makings of a multi-bagger since its been able to compound its capital at very profitable rates of return. And long term investors would be thrilled with the 665% return they've received over the last five years. So while the positive underlying trends may be accounted for by investors, we still think this stock is worth looking into further. If you'd like to know about the risks facing Arista Networks, we've discovered 1 warning sign that you should be aware of. High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
12-02-2025
- Business
- Yahoo
Arista Networks Inc's (NYSE:ANET) Stock's On An Uptrend: Are Strong Financials Guiding The Market?
Arista Networks (NYSE:ANET) has had a great run on the share market with its stock up by a significant 18% over the last three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Particularly, we will be paying attention to Arista Networks' ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. See our latest analysis for Arista Networks Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Arista Networks is: 29% = US$2.7b ÷ US$9.2b (Based on the trailing twelve months to September 2024). The 'return' is the amount earned after tax over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.29. So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. Firstly, we acknowledge that Arista Networks has a significantly high ROE. Additionally, the company's ROE is higher compared to the industry average of 13% which is quite remarkable. So, the substantial 30% net income growth seen by Arista Networks over the past five years isn't overly surprising. As a next step, we compared Arista Networks' net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 7.0%. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. Is Arista Networks fairly valued compared to other companies? These 3 valuation measures might help you decide. Arista Networks doesn't pay any regular dividends to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above. Overall, we are quite pleased with Arista Networks' performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
