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Will Higher Revenues Drive Arista's (ANET) Q4 Earnings?
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Arista Networks, Inc. (ANET - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 14, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 8.4%. It pulled off a trailing four-quarter earnings surprise of 6%, on average.
The Santa Clara, CA-based cloud networking solutions provider is expected to have recorded year-over-year higher revenues despite supply-chain challenges, driven by solid demand for its client-to-cloud networking portfolio across all customer sectors.
Factors at Play
During the quarter, Arista expanded its cognitive campus edge portfolio with a new Wi-Fi 6E access point. Customers can take advantage of the greater capacity, higher bandwidth and lower latency of Wi-Fi 6E to support high-definition video collaboration applications.
Arista expanded the EOS network stack by introducing the EOS Network Data Lake. Along with the AI/ML-driven Autonomous Virtual Assist and an ecosystem of industry leaders, Arista extended the EOS network stack architecture to provide a high-fidelity data lake capability for data-driven networking.
The company unveiled the next generation of the 7050X and 7060X Series, providing performance and cost benefits for customers as they transition to 400G networks.
Arista joined the Microsoft Intelligent Security Association, an ecosystem of software vendors and managed security service providers that have integrated their solutions to better defend against threats. Arista was selected based on an integration between Arista’s Network Detection and Response platform and Microsoft Azure Sentinel.
These developments are likely to have positively impacted Arista’s performance in the quarter. The Zacks Consensus Estimate for Product revenues is pegged at $633 million. The figure indicates a rise of 22.2% from the year-ago quarter’s reported figure. The consensus estimate for Service revenues stands at $156 million, which implies an increase from $130 million reported a year ago.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $791 million, which indicates growth of 22.1% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 74 cents, suggesting an increase of 19.4%.
What Our Model Says
Our proven model predicts an earnings beat for Arista this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Arista’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.95% as the former is pegged at 75 cents and the latter at 74 cents.
Zacks Rank: Arista currently carries a Zacks Rank #2.
Other Stocks to Consider
Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Akamai Technologies, Inc. (AKAM - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 15. Akamai Technologies has an Earnings ESP of +1.65% and a Zacks Rank #3.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +0.55% and a Zacks Rank #2. NVIDIA is set to report fourth-quarter fiscal 2022 results on Feb 16.
Image: Bigstock
Will Higher Revenues Drive Arista's (ANET) Q4 Earnings?
Arista Networks, Inc. (ANET - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 14, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 8.4%. It pulled off a trailing four-quarter earnings surprise of 6%, on average.
The Santa Clara, CA-based cloud networking solutions provider is expected to have recorded year-over-year higher revenues despite supply-chain challenges, driven by solid demand for its client-to-cloud networking portfolio across all customer sectors.
Factors at Play
During the quarter, Arista expanded its cognitive campus edge portfolio with a new Wi-Fi 6E access point. Customers can take advantage of the greater capacity, higher bandwidth and lower latency of Wi-Fi 6E to support high-definition video collaboration applications.
Arista expanded the EOS network stack by introducing the EOS Network Data Lake. Along with the AI/ML-driven Autonomous Virtual Assist and an ecosystem of industry leaders, Arista extended the EOS network stack architecture to provide a high-fidelity data lake capability for data-driven networking.
The company unveiled the next generation of the 7050X and 7060X Series, providing performance and cost benefits for customers as they transition to 400G networks.
Arista joined the Microsoft Intelligent Security Association, an ecosystem of software vendors and managed security service providers that have integrated their solutions to better defend against threats. Arista was selected based on an integration between Arista’s Network Detection and Response platform and Microsoft Azure Sentinel.
These developments are likely to have positively impacted Arista’s performance in the quarter. The Zacks Consensus Estimate for Product revenues is pegged at $633 million. The figure indicates a rise of 22.2% from the year-ago quarter’s reported figure. The consensus estimate for Service revenues stands at $156 million, which implies an increase from $130 million reported a year ago.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $791 million, which indicates growth of 22.1% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 74 cents, suggesting an increase of 19.4%.
What Our Model Says
Our proven model predicts an earnings beat for Arista this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Arista’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.95% as the former is pegged at 75 cents and the latter at 74 cents.
Arista Networks, Inc. Price and EPS Surprise
Arista Networks, Inc. price-eps-surprise | Arista Networks, Inc. Quote
Zacks Rank: Arista currently carries a Zacks Rank #2.
Other Stocks to Consider
Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Service Corporation International (SCI - Free Report) is slated to release fourth-quarter 2021 results on Feb 14. Service Corporation has an Earnings ESP of +17.39% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Akamai Technologies, Inc. (AKAM - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 15. Akamai Technologies has an Earnings ESP of +1.65% and a Zacks Rank #3.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +0.55% and a Zacks Rank #2. NVIDIA is set to report fourth-quarter fiscal 2022 results on Feb 16.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.