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Will Higher Revenues Boost Arista's (ANET) Q1 Earnings?

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Arista Networks, Inc. (ANET - Free Report) is scheduled to report first-quarter 2022 results on May 2, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 10.8%. It pulled off a trailing four-quarter earnings surprise of 7.7%, 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 customer additions and growth in the enterprise vertical.

Arista is benefiting from strong demand for its client-to-cloud networking portfolio across all sectors. The Zacks Consensus Estimate for Product revenues is pegged at $687 million. The figure indicates a rise of 27.5% from the year-ago quarter’s reported figure. The consensus estimate for Service revenues stands at $160 million, which implies an increase from $128 million reported a year ago.

For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $854 million, which indicates growth of 27.8% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 81 cents, suggesting an increase of 28.6%.

What Our Model Says

Our proven model doesn’t conclusively predict 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. But that’s not 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 0.00%, as both are pegged at 81 cents.

Arista Networks, Inc. Price and EPS Surprise

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 #3.

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Westlake Corporation (WLK - Free Report) is slated to release first-quarter 2022 results on May 3. Westlake has an Earnings ESP of +17.30% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Computer Programs and Systems, Inc. is scheduled to release first-quarter 2022 results on May 3. Computer Programs has an Earnings ESP of +1.52% and a Zacks Rank #1.

EnLink Midstream, LLC (ENLC - Free Report) has an Earnings ESP of +66.67% and a Zacks Rank #2. EnLink is set to report first-quarter 2022 results on May 3.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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