Arista(US:ANET) zacks.com·2024-05-24 14:01Core Viewpoint - Arista Networks has shown strong stock performance recently, with a +13.9% return over the past month, outperforming the S&P 500's +4% and the Communication - Components industry’s +17.9% [1] Earnings Estimates - For the current quarter, Arista Networks is expected to report earnings of $1.93 per share, reflecting a +22.2% increase year-over-year, with a +5.1% change in the Zacks Consensus Estimate over the last 30 days [3] - The consensus earnings estimate for the current fiscal year is $7.92, indicating a +14.1% year-over-year change, with a +5.2% adjustment in the last month [3] - For the next fiscal year, the earnings estimate is $8.88, representing a +12.1% change from the previous year, with a +4.9% change over the past month [3] Revenue Growth - The consensus sales estimate for the current quarter is $1.64 billion, indicating a +12.3% year-over-year change [6] - For the current fiscal year, the sales estimate is $6.69 billion, reflecting a +14.2% change, while the next fiscal year's estimate is $7.65 billion, indicating a +14.4% change [6] Recent Performance - In the last reported quarter, Arista Networks achieved revenues of $1.57 billion, a +16.3% increase year-over-year, and an EPS of $1.99 compared to $1.43 a year ago [7] - The company exceeded the Zacks Consensus Estimate for revenues by +1.26% and for EPS by +14.37% [7] - Arista Networks has consistently beaten consensus EPS and revenue estimates over the last four quarters [7] Valuation - The Zacks Value Style Score indicates that Arista Networks is graded F, suggesting it is trading at a premium compared to its peers [10] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [8][9] Conclusion - The strong Zacks Rank 1 for Arista Networks suggests potential for outperformance in the near term, despite its current premium valuation [11]