Arista Networks (ticker: ANET) experienced a surge in stock prices during after-hours trading following the release of their impressive financial results for the September quarter. The provider of networking equipment reported a remarkable revenue of $1.51 billion, a significant growth of 28% compared to the previous year. This exceeded both the company's forecasted range of $1.45 billion to $1.5 billion and the consensus estimate of $1.48 billion among analysts tracked by FactSet.

The stock exhibited a notable increase of 4.2%, reaching $175.72.

Adjusted profits per share stood at $1.83, surpassing the consensus estimate of $1.58. Moreover, Arista's non-GAAP operating margin reached an impressive 63.1%, outperforming management's forecasted margin of 62%. Under generally accepted accounting principles, Arista earned $1.72 per share.

The company indicated that its momentum throughout the quarter remained strong, driven by robust demand from enterprise customers as well as cloud and artificial intelligence companies.

It is worth mentioning that approximately half of Arista's revenue is generated from partnerships with Microsoft (MSFT) and Meta Platforms (META). Last week, Arista's stock faced pressure from selling activities after Meta's initial guidance on 2024 capital spending proved to be more conservative than expected by some investors. However, any concerns regarding Arista's financial outlook did not materialize in the third quarter.

Looking forward to the December quarter, Arista projects a revenue range of $1.5 billion to $1.55 billion, surpassing the consensus estimate of $1.47 billion. In addition, management anticipates that the adjusted gross margin will expand to 63%.

Arista revised its full-year revenue growth target to over 33%, up from the previous target of over 30%.


Arista Networks continues to deliver impressive financial results, attracting investor confidence with its exceptional performance in the September quarter. The company's strong momentum and its optimistic outlook for the upcoming quarter are indicative of its continued success in the networking equipment industry.

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