On February 14, Arista Networks Inc. (ANET) declared its financial results for the fourth quarter and full-year 2021. Following the release, the stock advanced further in the after-hours session.
The anticipation of the results had already caused investors to flock towards the stock in the regular trading session. Hence, ANET traded at a heavy volume of 4.2 million in the regular session to gain 1.57%. The stock closed the session at a value of $122.82 per share. Consequent to the announcement, ANET continued to rise in the after-hours, adding 7.31% or $8.98. Therefore, the stock reached up to $131.80 per share value in the after-hours on Monday.
The cloud networking solutions provider, Arista Networks Inc. was founded in 2004. Currently, its 307.28 million outstanding shares trade at a market capitalization of $37.16 billion. ANET stock stands at a year-to-date loss of 14.56% while it increased by 51.95% last year.
ANET’s Q4 2021
In Q4 2021, the company had revenue of $824.5 million, marking a YOY growth of 27.1%.
Moreover, the company reported a non-GAAP net income of $262.4 million in Q4 2021. Comparatively, the non-GAAP net income was $197.7 million in the year-ago period. Thus, the non-GAAP net income per diluted share was $0.82 and $0.62 in Q4 2021 and 2020, respectively.
Full-year 2021
For the full year 2021, the company reported revenue of $2.95 billion, which marks a YOY increase of 27.2%.
Furthermore, ANET had a non-GAAP net income of $915.0 million in fiscal 2021, against $718.4 million in the previous year. Therefore, the non-GAAP net income per diluted share was $2.87 and $2.26 in fiscal 2021 and 2020, respectively.
ANET’s Future Outlook
For Q1 2022, the company expects revenue to be in the range of $840 million and $860 million. Additionally, the expected non-GAAP gross margin is 63-64% and operating margin 38% approx.
Four-for-One Stock Split
Previously, on November 01, 2021, the company had announced its intention for a four-for-one stock split. The stock split’s completion was announced on November 19. As part of the stock split, ANET’s shareholders (record November 11) received additional three shares for each share held. The split-adjusted basis trading of the stock commenced on November 18, 2021.
Conclusion
On Monday, ANET surpassed both its revenue and earnings expectations. Happy with the earnings report, the investors drove the stock up in the after hours. In conclusion, the stock surged in the after-hours following the beat earnings results on Monday.
