High-growth cloud computing stocks have been all the rage in recent years, with pure-play cloud companies posting jaw-dropping growth numbers. However, the recent selloff we’re seeing in certain tech segments, and the global pressure that’s been building for equity markets, are providing a harsh reality check for investors.Many cloud stocks are currently trading at significant discounts to fair value. Thus, despite the bearish sentiment surrounding the tech sector, I believe it’s worth selectively buying so ...

证 券 研 究 报 告 Arista（ANET）FY24Q2 业绩点评及法说会纪要 会议时间：2024.7.31 会议地点：线上 AI 集群向 10 万卡拓展，叠加传统云计算更 新周期有望为公司带来快速增长 事项： 2024 年 7 月 30 日 Arista 公司发布 2024 财年第二财季业绩报告，并召开业绩 说明会。公司财务季度 FY2024Q2 截至 2024 年 6 月 30 日，与自然季度相同。 评论： 1、总体营收情况：24Q2 公司实现营收 16.9 亿美元（同比增长 15.9%，环比增 长 7.6%），non-GAAP 毛利率为 65.4%，non-GAAP 摊薄每股收益 2.1 美元。 2、营收按区域划分：24Q2 公司美洲/欧洲、中东和非洲/亚太地区营收分别为 13.74/1.79/1.37 亿美元，在当年营收中的占比分别为 81%/11%/8%。整体来看， 公司美洲区域营收占比有所提升，亚太区域有所下滑。 3、2024Q3 公司业绩指引：公司预计 24Q3 收入约为 17.2 亿美元至 17.5 亿美 元，non-GAAP 毛利率为 63%~64%，营业利润率为 44%。传统云正在经历 ...

In the most anticipated week of the Q2 earnings season, several top-rated Zacks stocks are standing out after exceeding their quarterly top and bottom line expectations on Tuesday.Setting themselves apart from a slew of popular companies that have reported this week, let’s review the Q2 results of three of these top stocks which all sport a Zacks Rank #2 (Buy).Arista Networks (ANET) Big tech has been the highlight of this week’s earnings lineup and Arista Networks joins the conversation as Q2 EPS of $2.10 b ...

Key TakeawaysArista Networks shares finished 11% higher Wednesday after the cloud networking company reported better-than-expected earnings and lifted its full-year revenue outlook.Analysts said the company's Etherlink switch portfolio positions it to gain from the artificial intelligence boom.The company's guidance could be conservative, analysts said. Arista Networks (ANET) shares finished Wednesday up 11% after the cloud networking giant reported better-than-expected earnings and raised its outlook. The ...

Marco VDM/E+ via Getty Images I upgraded Arista Networks, Inc. (NYSE:ANET) to “Strong Buy” in my latest report published in March 2024, highlighting its long-term growth potential in the data center Ethernet switch market. The company released its Q2 result on July 30th after the market close, beating the market expectations. I favor the company’s mid-teen revenue growth driven by data center and AI investments. I reiterate a “Strong Buy” rating with a one-year target price of $420 per share. Further Ex ...

The tiny technology company is making a big impact on the artificial intelligence industry.The booming artificial intelligence (AI) market is bearing fruit for more companies than the obvious names like Nvidia and Google parent Alphabet. According to numbers from S&P Global Market Intelligence, shares of networking technology outfit Arista Networks (ANET 10.83%) are up 10.9% as of 1:16 p.m. ET Wednesday in response to an impressive second-quarter report, largely fueled by its role in the advent of AI.AI is ...

Arista Networks, Inc. (ANET) reported healthy second-quarter results, with the top and bottom lines soaring year over year, driven by robust demand trends. Innovative product launches and steady customer additions backed by the company’s best-in-class portfolio strength ensured top-line expansion, while steady margin improvement contributed to earnings growth. Both the bottom and the top lines beat the respective Zacks Consensus Estimate.Net IncomeGAAP net income in the reported quarter improved to $665.4 m ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2024 were $1.69 billion, representing a year-over-year increase of 15.9%, significantly exceeding the guidance of $1.62 billion to $1.65 billion [21][22] - Non-GAAP earnings per share for the quarter were $2.10, up 32.9% from the prior year [23] - Non-GAAP gross margin was 65.4%, up from 64.2% in the previous quarter and 61.3% in the same quarter last year [22][23] - Operating income for the quarter was $785.6 million, or 46.5% of revenue [23] Business Line Data and Key Metrics Changes - Services and Subscription Software contributed approximately 17.6% of revenue, up from 16.9% in Q1 2024 [21] - International revenues were $316 million, accounting for 18.7% of total revenue, down from 20.1% in the prior quarter [21] Market Data and Key Metrics Changes - The Americas contributed 81% of total revenue, while international contribution was 19% [7] - The APJ region showed relatively weaker performance, impacting international revenue [21] Company Strategy and Development Direction - The company is focused on a total addressable market (TAM) of over $70 billion, with significant growth opportunities in AI and cloud networking [6][27] - The launch of the Etherlink AI platforms aims to support the migration from InfiniBand to Ethernet, indicating a strategic shift towards AI networking solutions [7][8] - The company plans to continue investing in R&D and go-to-market strategies to support growth in Cloud, AI, and Enterprise sectors [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum seen in the market, with expectations for continued growth in the second half of 2024 [27] - The company anticipates a revenue growth guidance of at least 14% for the fiscal year 2024, with a gross margin outlook of 62% to 64% [27][28] - Management highlighted the importance of Ethernet in AI networking and the evolving role of data centers as AI centers [18][75] Other Important Information - The company repurchased $172 million of common stock during the quarter, with a new program of $1.2 billion approved in May 2024 [24] - Cash, cash equivalents, and investments totaled $6.3 billion at the end of the quarter [24] Q&A Session Summary Question: Insights on next-generation GPUs and networking modularity - Management noted that as GPUs become faster, the dependency on high-throughput networks increases, emphasizing the timely introduction of 800-gig products [32] Question: Deferred revenue balance and AI opportunities - Management explained that the product deferred revenue can fluctuate and is particularly high when new products and use cases are introduced [35][36] Question: Status of AI trials - Management confirmed that the four major AI trials are progressing well and moving into pilot phases, with additional smaller customers starting AI pilots [40] Question: Understanding the $70 billion TAM - Management detailed that the TAM includes various segments such as data centers, AI, campus, and wide area networks, with significant growth potential in each [42] Question: Trends in traditional infrastructure investments - Management acknowledged a pivot from classic cloud spending to AI, while also noting ongoing refresh cycles in traditional infrastructure [46] Question: Growth expectations for the second half of 2024 - Management expressed confidence in continued growth acceleration, with a conservative guidance of at least 14% for the year [49][51] Question: Competitive environment and NVIDIA's Spectrum - Management indicated that while they compete with NVIDIA's Spectrum, they maintain a strong win rate due to their product performance and reliability [82] Question: Enterprise customer behavior and network refresh - Management observed activity across various enterprise customer segments, with a notable interest in upgrading to higher-speed networks [87]

Arista Networks (ANET) came out with quarterly earnings of $2.10 per share, beating the Zacks Consensus Estimate of $1.94 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.25%. A quarter ago, it was expected that this cloud networking company would post earnings of $1.74 per share when it actually produced earnings of $1.99, delivering a surprise of 14.37%.Over the last four quarte ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | --- | --- | --- | |-------|----------------------------------------------------------------|------------------------------------------|- ...