Arista Networks, Inc. (NYSE: ANET) a leader in cloud networking announced after hour results, prompting a 21% increase as the company doubled revenue from a year ago.
The company, 3 years public and three-time recognized leader in Completeness of Vision, announced revenues of $405.2 million, a 50.8% increase from 2016 Q2 and 20.8% increase from this year’s previous quarter. Investors were rocked as their estimates of $360.9 million were easily overcome. Non-GAAP net income came to a total of $102.7 million, or $1.30 per share, almost twice the $0.74 of Q2-2016. "We are pleased with our exceptional performance in the quarter across all key financial metrics.” According to Ita Brenner, CFO of Arista, and with the introduction of the next generation R2 Series platform, Arista upped their guidance. Revenue is expected to reach $405 – $420 million next quarter, analysts however are expecting numbers closer to $377 million.
Can these results be replicated however, with the company overshooting estimates so much and then further raising guidance. The release of the R2 Series platform should give Arista a boost in the coming quarter, and with the quarter million boost in cash it received it should be able to increase investments and development. The targets they have set are high, but this company seems to be on solid ground.