(Reuters) – 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.
The results underscore growing demand for advanced networking infrastructure capable of supporting complex AI workloads.
As more enterprises adopt AI technologies, Arista stands to benefit from increased demand for advanced networking capabilities to support these initiatives.
Analysts anticipate that Arista will continue to benefit from the ongoing digital transformation across industries and the increasing demand for robust networking solutions.
The company’s prospects are further bolstered by increased capital expenditure from major cloud players, including Microsoft and Meta Platforms, which bodes well for Arista as a key supplier in this space.
Arista completed a four-for-one stock split in December, as a result of which each shareholder received three additional shares.
Peer Juniper Networks earlier this month topped analysts’ estimates for preliminary fourth-quarter revenue and profit.
Arista forecast first-quarter revenue in the range of $1.93 billion to $1.97 billion, compared with estimates of $1.91 billion, according to data compiled by LSEG.
Its revenue for the fourth quarter ended December 31 came in at $1.93 billion, slightly above analysts’ estimate of $1.90 billion.
On an adjusted basis, the company earned 65 cents per share, compared with profit of 52 cents apiece in the previous year.
(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
Comments