Arista Networks (NYSE:ANET) Releases Quarterly Earnings Results, Beats Estimates By $0.38 EPS

Arista Networks (NYSE:ANET) announced its quarterly earnings results on Tuesday. The technology company reported $2.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.72 by $0.38, Briefing.com reports. The company had revenue of $1.69 billion during the quarter, compared to the consensus estimate of $1.66 billion. Arista Networks had a net margin of 37.64% and a return on equity of 31.12%. The company’s revenue for the quarter was up 15.9% compared to the same quarter last year. During the same period in the prior year, the business earned $1.41 earnings per share. Arista Networks updated its Q3 2024 guidance to EPS.

Arista Networks Stock Performance

NYSE:ANET traded up $27.57 on Wednesday, hitting $338.99. The stock had a trading volume of 1,406,042 shares, compared to its average volume of 2,456,674. The stock has a market cap of $106.23 billion, a P/E ratio of 46.41, a price-to-earnings-growth ratio of 2.82 and a beta of 1.11. Arista Networks has a 1 year low of $150.72 and a 1 year high of $376.50. The firm’s fifty day simple moving average is $330.57 and its two-hundred day simple moving average is $296.56.

Insider Buying and Selling at Arista Networks

In other Arista Networks news, CEO Jayshree Ullal sold 25,000 shares of the stock in a transaction dated Wednesday, May 15th. The shares were sold at an average price of $317.00, for a total value of $7,925,000.00. Following the completion of the sale, the chief executive officer now owns 1,615,800 shares in the company, valued at approximately $512,208,600. The transaction was disclosed in a document filed with the SEC, which is available at this link. In other news, CEO Jayshree Ullal sold 25,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 15th. The shares were sold at an average price of $317.00, for a total transaction of $7,925,000.00. Following the completion of the sale, the chief executive officer now owns 1,615,800 shares in the company, valued at approximately $512,208,600. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Kelly Bodnar Battles sold 356 shares of Arista Networks stock in a transaction that occurred on Tuesday, May 7th. The shares were sold at an average price of $274.91, for a total transaction of $97,867.96. Following the completion of the transaction, the director now owns 2,570 shares of the company’s stock, valued at $706,518.70. The disclosure for this sale can be found here. In the last 90 days, insiders sold 206,616 shares of company stock worth $68,045,190. Insiders own 3.54% of the company’s stock.

Analyst Ratings Changes

A number of analysts recently weighed in on the company. JPMorgan Chase & Co. increased their price objective on Arista Networks from $297.00 to $315.00 and gave the company an “overweight” rating in a report on Thursday, April 11th. Bank of America increased their price objective on Arista Networks from $320.00 to $380.00 and gave the company a “buy” rating in a report on Thursday, June 20th. Rosenblatt Securities restated a “sell” rating and issued a $210.00 price objective on shares of Arista Networks in a report on Friday, April 12th. Erste Group Bank reaffirmed a “buy” rating on shares of Arista Networks in a research report on Friday, June 14th. Finally, Piper Sandler upped their price target on shares of Arista Networks from $302.00 to $345.00 and gave the company a “neutral” rating in a research report on Monday, July 15th. One research analyst has rated the stock with a sell rating, four have given a hold rating and seventeen have given a buy rating to the company. According to MarketBeat, Arista Networks presently has a consensus rating of “Moderate Buy” and an average price target of $339.88.

Arista Networks announced that its board has approved a stock buyback plan on Tuesday, May 7th that permits the company to repurchase $1.20 billion in shares. This repurchase authorization permits the technology company to reacquire up to 1.4% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

About Arista Networks

Arista Networks, Inc engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications.