Arista Networks Stock Slides On Q4 Earnings: The Details
Portfolio Pulse from Adam Eckert
Arista Networks Inc (NYSE:ANET) reported Q4 earnings with a 20.8% year-over-year revenue increase to $1.54 billion, surpassing estimates. Earnings per share were $2.08, beating the $1.70 forecast. The company projects Q1 revenue between $1.52 billion and $1.56 billion, with adjusted gross margins around 62%. Despite positive results, ANET shares dropped 5.39% after hours to $265.99.
February 12, 2024 | 9:18 pm
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NEGATIVE IMPACT
Arista Networks reported strong Q4 earnings, surpassing both revenue and EPS estimates, with a positive outlook for Q1 revenue and margins. However, shares fell 5.39% after hours.
The negative price action after hours, despite surpassing earnings and revenue estimates, suggests a short-term bearish sentiment among investors. This could be due to profit-taking or higher expectations embedded in the stock price prior to the earnings release. The positive outlook for Q1 might not have been enough to offset these factors in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100