Earnings Results: Arista Networks rises on earnings, outlook beat, share buyback, stock split

Arista Networks Inc. shares rose in the extended session Monday after the cloud-software company not only posted an earnings and outlook beat but announced a big share buyback and a stock split.

Arista shares rose 4% after hours, following a 0.3% decline in the regular session to close at $408.57.

The company reported third-quarter net income of $224.3 million, or $2.81 a share, compared with $168.4 million, or $2.12 a share, in the year-ago period. Adjusted earnings were $2.96 a share, compared with $2.42 in the year-ago period.

Revenue rose to $748.7 million from $605.4 million in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of $2.73 a share on revenue of $738.2 million.

“We are experiencing strong demand for our pioneering client to cloud networking portfolio across all of our customer sectors,” said Jayshree Ullal, Arista chief executive, in a statement. “Despite a challenging supply chain environment, I am pleased with our delivery of another record quarter of Arista’s financial results in Q3 2021.”

Arista said it expects fourth-quarter revenue of $775 million to $795 million, while analysts had forecast revenue of $753.8 million.

Arista also said its board authorized the repurchase of an added $1 billion in shares, and announced a four-to-one stock split around Nov. 18.

This post was originally published on Market Watch

Financial News

Daily News on Investing, Personal Finance, Markets, and more!