Shares of tech company Arista (NYSE:ANET) rose in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2024. Earnings per share came in at $1.99, which beat analysts’ consensus estimate of $1.74 per share. Interestingly, Arista has also beaten analysts’ expectations in the previous eight quarters, as pictured below.
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Furthermore, sales increased by 16.3% year-over-year, with revenue hitting $1.57 billion. This beat analysts’ expectations of $1.548 billion. When breaking down revenue geographically, we can see that most of the company’s business comes from the Americas. This suggests that Arista is not really at risk of being materially disrupted by geopolitical conflicts in Europe and the Middle East.
Looking forward, management now expects revenue and its non-GAAP operating margin for Q2 2024 to be $1.62 billion to $1.65 billion and 44%, respectively. For reference, analysts were expecting revenue of $1.62 billion.
Is ANET Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ANET stock based on 13 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 98% rally in its share price over the past year, the average ANET price target of $299.47 per share implies 9.54% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
