Shares of Arista Networks (ANET) declined in pre-market trading, even though the company reported better-than-expected Q3 results. The computer networking company’s adjusted earnings increased by 31.1% to $2.40 per share, above consensus estimates of $2.08 per share.
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Furthermore, the company’s revenues increased by 7.1% year-over-year to $1.81 billion in the third quarter, surpassing Street estimates of $1.76 billion.
ANET Announces a Four-for-One Stock Split
Additionally, the company announced a four-for-one forward stock split. This move is aimed at making Arista’s common stock more accessible to a wider group of investors, allowing more people to participate in the company’s growth.
As a result, the company’s stockholders will receive an additional three shares of common stock for each share held as of the effective time of the filing of the amendment on December 3. On December 4, 2024, trading will begin on a split-adjusted basis before the market opens.
ANET Issues Q4 Guidance
Looking ahead, the company expects Q4 revenues to be in the range of $1.85 billion to $1.90 billion, while adjusted operating margin is likely to be 44%. For reference, analysts were expecting $1.8 billion in revenue and an adjusted operating margin of around 43.5%.
Is ANET a Good Stock to Buy Now?
Analysts remain bullish about ANET stock, with a Strong Buy consensus rating based on seven Buys and two Holds. Over the past year, ANET has surged by more than 100%, and the average ANET price target of $409.44 implies a downside potential of 5% from current levels.
