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

Arista Networks (NYSE:ANET) released its earnings results on Tuesday. The technology company reported $2.10 EPS for the quarter, topping the consensus estimate of $1.72 by $0.38, Briefing.com reports. The firm had revenue of $1.69 billion for the quarter, compared to the consensus estimate of $1.66 billion. Arista Networks had a net margin of 39.01% and a return on equity of 31.81%. The company’s quarterly revenue was up 15.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.41 earnings per share. Arista Networks updated its Q3 2024 guidance to EPS.

Arista Networks Stock Performance

NYSE ANET traded down $6.89 on Thursday, reaching $339.66. 2,556,304 shares of the stock traded hands, compared to its average volume of 2,485,497. Arista Networks has a 12 month low of $168.25 and a 12 month high of $376.50. The company has a market cap of $106.44 billion, a price-to-earnings ratio of 49.20, a PEG ratio of 2.74 and a beta of 1.11. The company has a fifty day moving average price of $331.17 and a 200-day moving average price of $296.91.

Insider Transactions at Arista Networks

In other news, SVP Kenneth Duda sold 20,000 shares of the company’s stock in a transaction that occurred on Monday, July 8th. The shares were sold at an average price of $370.70, for a total value of $7,414,000.00. Following the completion of the sale, the senior vice president now owns 3,244 shares of the company’s stock, valued at approximately $1,202,550.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other Arista Networks news, Director Yvonne Wassenaar sold 223 shares of Arista Networks stock in a transaction dated Tuesday, May 21st. The stock was sold at an average price of $316.34, for a total value of $70,543.82. Following the transaction, the director now owns 2,976 shares in the company, valued at $941,427.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Kenneth Duda sold 20,000 shares of the stock in a transaction dated Monday, July 8th. The shares were sold at an average price of $370.70, for a total transaction of $7,414,000.00. Following the sale, the senior vice president now directly owns 3,244 shares of the company’s stock, valued at $1,202,550.80. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 205,116 shares of company stock valued at $67,657,035. 3.54% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Barclays raised their price objective on Arista Networks from $320.00 to $341.00 and gave the company an “overweight” rating in a research report on Wednesday. Erste Group Bank reaffirmed a “buy” rating on shares of Arista Networks in a research note on Friday, June 14th. Needham & Company LLC reiterated a “buy” rating and set a $375.00 target price on shares of Arista Networks in a research report on Wednesday. Wells Fargo & Company upped their price target on shares of Arista Networks from $340.00 to $390.00 and gave the company an “overweight” rating in a research note on Wednesday, July 24th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Arista Networks from $335.00 to $340.00 and gave the stock an “overweight” rating in a research note on Wednesday. One analyst has rated the stock with a sell rating, four have issued a hold rating and seventeen have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $345.82.

Arista Networks declared that its Board of Directors has initiated a stock repurchase program on Tuesday, May 7th that permits the company to repurchase $1.20 billion in outstanding shares. This repurchase authorization permits the technology company to buy up to 1.4% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its shares are undervalued.

Arista Networks Company Profile

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.