Arista Networks (ANET) has reported fourth-quarter 2024 financial results that topped Wall Street forecasts on the top and bottom lines.
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The maker of cloud computer networking gear reported earnings per share (EPS) of $0.65, which topped the consensus estimate of $0.57. Revenue in the October through December quarter totaled $1.93 billion, which was ahead of the $1.90 billion expected on Wall Street. Sales were up 25% from a year ago.
Looking ahead, Arista Networks forecast revenue of $1.95 billion for the current first quarter of the year. That was ahead of analyst guidance that called for $1.90 billion in Q1 2025 sales. ANET stock is flat so far this year, having gained 0.48%.
Data Center Explosion
Arista sells computer network switches that operate communications in internet data centers. Its biggest customers are Microsoft (MSFT) and Meta Platforms (META). Analysts generally expect ANET stock to get a boost this year from customer investments in artificial intelligence (AI) infrastructure. Internet data centers are in high demand and expected to need more network bandwidth to run AI workloads.
In recent quarters, Arista Networks has grown its share of the enterprise market that is comprised of large companies, government agencies, and educational institutions. Owing to the explosive growth of data centers, ANET stock has increased 71% over the last 12 months.
Is ANET Stock a Buy?
Arista Networks stock has a consensus Strong Buy rating among 11 Wall Street analysts. That rating is based on nine Buy and two Hold recommendations issued in the last three months. The average ANET price target of $123.08 implies 10.82% upside from current levels. These ratings are likely to change after the company’s latest financial results.
