Arista Networks stock is higher in late trading Monday after it posted strong third-quarter results, declared a four-for-one stock split, and unveiled a $1 billion stock-buyback plan.
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Arista Networks stock is trading sharply higher in late trading Monday after the networking-hardware company posted better-than-expected third-quarter results, and declared a four-for-one stock split, along with a new $1 billion stock-buyback plan.
For the quarter, Arista (ticker: ANET) reported revenue of $748.7 million, up 23.7% from a year ago, 5.8% above the June quarter level and ahead of the Street consensus forecast at $737.9 million. Non-GAAP profits were $2.96 a share, ahead of consensus at $2.73 a share. Under generally accepted accounting principles, the company earned $224.3 million, or $2.81 a share. Non-GAAP gross margin was 64.9%, slightly ahead of the 64.6% reported a year earlier.
“The business continued to perform well in the quarter, exceeding on all key financial metrics, while the team navigates a difficult supply environment,” Arista Chief Financial Officer Ita Brennan said in a statement.
As noted, the company also declared a four-for-one stock split, to be paid to holders of record on Nov. 11, with the stock to trade on a split-adjusted basis on Nov. 18. Arista said its board in October approved a new $1 billion addition to its stock-repurchase program.
For the December quarter, Arista projects revenue in the range from $775 million to $795 million, with non-GAAP gross margin in the 63%-to-65% range.
Arista stock in late trading is up 6.5% to $435.
Write to Eric J. Savitz at [email protected]
