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Arista Networks (ANET) is down more than 6% after the close tonight, even after the data center specialist reported strong financial results for the third quarter of 2024, and forecast Q4 revenue above analysts’ expectations.
Q3 adjusted earnings totaled $2.40 per share on revenue of $1.81 billion, up 20% year over year, against Wall Street’s estimated $2.08 per share on $1.75 billion in revenue. Results were driven by its innovative networking solutions and strategic collaborations with hyper-scalers like Meta Platforms (META).
Plus, Arista Networks’ management issued optimistic Q4 revenue guidance that topped analysts’ expectations, with the range of $1.85-$1.9 billion comfortably surpassing the $1.8 billion consensus.
ANET, which closed Thursday above $431 per share, also announced a four-for-one stock split to increase accessibility for investors. The stock will start trading on a split-adjusted basis as of Dec. 4.
Arista Networks was looking a little overvalued heading into tonight’s report, which may be contributing to the after-hours pullback - though late trading can be thin, and the stock could still reverse in tomorrow’s session, like Arm Holdings (ARM) did today.
Over the last 52 weeks, ANET has more than doubled in value, and the shares ended Thursday about 8.4% above their average price target from analysts.
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