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Increased fiber densification, cloud focus and accelerated pace of 5G deployment should help the Zacks Communication - Components industry thrive despite short-term headwinds. ANET, GLW and AUDC are well-positioned to make the most of the demand for seamless connectivity solutions.
I reiterate a “Strong Buy” on Arista Networks Inc, driven by their expansion into Etherlink AI and security network markets, with a target price of $125 per share. Arista's 25.3% revenue growth and 21.9% adjusted operating profit growth are bolstered by Microsoft and Meta's increasing CAPEX spending, significant growth catalysts. Arista's SaaS-based network services and software now represent 17% of total revenue, reducing growth volatility and expanding margins.
Shares of Arista Networks Inc ANET were trading lower on Wednesday, despite the company reporting upbeat fourth-quarter results.
Arista Networks (ANET -8.17%) stock is heading lower in Wednesday's trading. The networking technologies company's share price was down 7.3% as of 10:30 a.m.
The networking equipment company easily beat quarterly estimates for earnings and sales.
Here's our initial take on Arista Networks' (ANET 3.92%) fourth-quarter financial report.
Arista Networks (ANET 3.92%) stock is performing relatively well as demand for artificial intelligence soars.
Arista Networks had an impressive 2024, but the current valuation at 32x forward non-GAAP operating profits makes it less enticing. Despite strong AI networking prospects, much of ANET's growth is already priced in, with operating margins showing signs of compression. ANET's balance sheet flexibility is notable, but the risk-reward balance doesn't justify a bullish stance at this valuation.
Arista Networks (ANET) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.52 per share a year ago.
Arista Networks forecast first-quarter revenue above Wall Street estimates on Tuesday, anticipating higher demand for its cloud networking gear from a boom in artificial intelligence applications and chips.