Arista Networks projects Q2 revenue above estimates

Arista Networks

07/05/2024 21:37

May 7 (Reuters) - Arista Networks  ANET.N  forecast
second-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. 
    The results underscore strong spending on Arista's products
such as Ethernet switches and routers from clients, including
Microsoft  MSFT.O  and Meta Platforms  META.O , as they grow
their cloud and data center infrastructure to support AI needs.
    The company forecast second-quarter revenue in the range of
$1.62 billion to $1.65 billion, the mid-point of which was
higher than the LSEG estimate of $1.62 billion. 
    Santa Clara, California-based Arista's results contrast with
those of peer Juniper Networks  JNPR.N , which reported downbeat
revenue last month due to sluggish demand for the networking
gear maker's products in an uncertain economy.
    Arista's revenue for the quarter ended March 31 rose 2% to
$1.57 billion, beating analysts' estimate of $1.55 billion.
    The company reported net income of $637.7 million, compared
with $436.5 million a year ago. 
    On an adjusted basis, the company earned $1.99 per share,
compared with $1.43 apiece in the previous year.
    

 (Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
 ((Juby.Babu@thomsonreuters.com;))