Arista Networks, Inc. (ANET) stock soared 15.65% in the after-hours trading session at the price of $472.51 after reporting its financial results for the third quarter of 2021. ANET is a leader in client-to-cloud networking, data-driven, campus, and routing environments. Its award-winning programs provide automation, availability, analytics, agility, and security through Arista EOS and Cloud Vision.
ANET Third Quarter 2021 Financial Results
On 1st November 2021, ANET published its financial results for the third quarter ended 30th September 2021.
Financial Highlights
ANET reported revenue of $748.7 million for the third quarter ended 30th September 2021. It represents a gain of 5.8% from the second quarter of 2021 and a 23.7% rise from the third quarter of 2020. For the third quarter of 2021, the gross margin was 63.9% from 63.6% in the same quarter of the previous year. GAAP net income was $224.3 million, or $2.81 per share, for the third quarter ended 30th September 2021. For the third quarter ended 30th September 2020, net income was $168.4 million, or $2.12 per share (diluted).
ANET Financial Outlook
ANET expects revenue to range from $775 million to $795 million for the fourth quarter of 2021. Non-GAAP gross margin expects to be from 63% to 65% in the fourth quarter of 2021. In October 2021, the company’s Board of Directors raised the previously announced repurchase shares by authorizing an extra $1 billion.
Management Comments
Chief executive officer of ANET, Jayshree Ullal, remarked that they had witnessed strong demand for their pioneering client to cloud networking across all of their consumer sectors. They are happy to deliver another record quarter with higher financial results despite unfavorable supply chain conditions, he added.
Chief Finance Officer of ANETL, Ita Brennan, commented that their business performed very well in the third quarter of 2021. They observed beating results on all key financial metrics despite the harsh supply environment.
ANET Cognitive Campus Portfolio with Wi-Fi 6E Access Point
On 6th October 2021, ANET published that it had expanded its cognitive campus portfolio with the latest Wi-Fi 6E solution. It will provide higher capacity, greater bandwidth, and lower latency to support IoT proliferation and high-definition video applications. The C-360 wireless program is a cognitive unified edge solution with high-level AI/ML capabilities to recognize wired and wireless network devices.
