SANTA CLARA - Arista Networks , Inc. (NYSE:ANET), a prominent player in the networking industry, reported a robust performance for the second quarter ended June 30, 2024, with earnings and revenue surpassing Wall Street's expectations.
The company's stock edged up 1% following the announcement, reflecting investor optimism driven by the positive financial outcome.
For the second quarter, Arista Networks posted revenue of $1.69 billion, a 15.9% increase YoY and above the analyst consensus of $1.65 billion. The adjusted EPS came in at $2.10, outperforming the estimated $1.94 by $0.16.
This marks a significant 33% rise in EPS compared to the same quarter last year, as noted by CFO Chantelle Breithaupt, attributing the growth to strong revenue and gross margin performance.
Adjusted net income also saw a rise from $501.2 million, or $1.58 per diluted share, in the prior year.
Looking ahead, Arista Networks provided guidance for the third quarter of 2024, forecasting revenue between $1.72 billion to $1.75 billion. This range sets the midpoint slightly below the analyst consensus of $1.73 billion. The company also anticipates an adjusted gross margin of 63% to 64% and an operating margin of around 44%.
CEO Jayshree Ullal expressed gratitude to customers, employees, and partners for contributing to Arista's success, especially as the company celebrated a decade as a public entity. The second quarter's financial results were hailed as a testament to Arista's growth, profitability, and industry-leading platforms.
Arista Networks continues to innovate, as evidenced by their recent product launches and collaborations, including the next-generation Multi-Domain Segmentation for Zero Trust Networking and holistic AI solutions in partnership with NVIDIA (NASDAQ:NVDA). The company also unveiled the Etherlink AI Networking Platforms, designed to optimize network performance for demanding AI workloads.
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