ANET Earnings Prediction
The chart below shows how ANET performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ANET sees a -0.99% change in stock price 10 days leading up to the earnings, and a +5.11% change 10 days following the report. On the earnings day itself, the stock moves by +0.35%. This data can give you a slight idea of what to expect for the next quarter's release.
ANET Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.93B
25.32%
6.60%
Gross Margin
63.77%
-1.70%
-0.59%
Operating Margin
41.42%
-0.29%
-4.47%
Net Margin
41.49%
4.14%
0.46%
EPS
0.62
29.17%
6.90%
No Data Available
ANET Earnings Analysis
Arista Networks Inc Corporation (ANET.N) Earnings Conference Call
Positive
Q4 Revenue Surge: Arista Networks reported a strong Q4 2024 with revenues of $1.93 billion, exceeding guidance and reflecting a 25.3% year-over-year growth.
Earnings Per Share Surge: The company achieved a non-GAAP EPS of $0.65, surpassing expectations of $0.567, marking a 25% increase from the prior year.
Record Revenue Achievement: For the fiscal year 2024, Arista delivered a record revenue of $7 billion, achieving nearly 20% growth, significantly above the initial guidance of 10% to 12%.
Q4 Non-GAAP Gross Margins: Non-GAAP gross margins for Q4 were 64.2%, slightly above guidance, driven by efficient supply chain management and a favorable product mix.
Strong Operational Efficiency: The company reported a non-GAAP operating margin of 47.5% for the fiscal year 2024, demonstrating strong operational efficiency.
Cloud and AI Revenue Contribution: Arista's cloud and AI sectors contributed approximately 48% of total revenue, indicating strong demand in these areas.
Customer Base Expansion: The company has increased its 400-gig customer base to around 1,000 customers, showcasing its growing market presence.
Software Revenue Milestone: Arista surpassed $1 billion in revenue for its software and subscription services category in 2024, reflecting strong growth in this segment.
Customer Satisfaction Excellence: The company achieved a high Net Promoter Score of 87, indicating strong customer satisfaction and loyalty.
Revenue Growth Guidance Increase: Arista's leadership team expressed optimism for 2025, raising revenue growth guidance to approximately 17%, aiming for $8.2 billion in revenue.
Negative
Decline in International Revenue: International revenues decreased to 16% of total revenue, down from 17.6% last quarter, indicating a reliance on domestic revenue.
Gross Margin Decline: Gross margin in Q4 was 64.2%, down from 65.4% in the prior year, suggesting a slight decline in profitability.
Rising Operating Expenses: Operating expenses increased to $332.4 million or 17.2% of revenue, up from $279.9 million, indicating rising costs.
R&D Spending Increase: R&D spending rose to $226.1 million or 11.7% of revenue, up from 9.8% last quarter, reflecting increased investment but also higher operational costs.
Tax Rate Fluctuation: The effective tax rate was unusually low at 16.7% in Q4, but is expected to return to a higher rate of 21.5%, which could impact net income going forward.
Accounts Payable Increase: Accounts payable days increased to 51 days, up from 42 days in Q3, indicating potential cash flow issues or delays in payments.
Facility Expansion Costs: Capital expenditures are expected to be approximately $100 million in fiscal '25 for facility expansion, which could strain cash reserves.
Deferred Revenue Variability: The company noted variability in deferred revenue balances due to customer-specific acceptance clauses, which may lead to unpredictability in revenue recognition.
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ANET Earning Call Sentiment
Arista Networks, Inc. (NYSE:ANET) Q4 2024 Earnings Call Transcript
ANET.N
3.77%Positive
Arista's earnings report shows strong revenue growth and EPS increase, despite a slight decline in gross margin. The optimistic guidance and AI network growth outlook, coupled with a substantial share repurchase program, suggest positive market sentiment. The Q&A highlights confidence in AI back-end sales and enterprise growth, although some management responses were vague. Overall, the financial performance and strategic initiatives indicate a positive outlook for the stock price in the short term.
