Arista Shares Surge to Reward Congressman Michael McCaul
Arista Networks (ANET:US) shares surged more than 15% in early Tuesday trading after the IT networking company reported better-than-expected results for its second quarter and offered an upbeat forecast for the current quarter.
Arista saw its earnings per share rise $0.50 year-over-year to $1.58, easily topping the analyst consensus that was looking for $1.44. Revenue jumped 8% YoY to $1.46 billion, topping the $1.38 billion expected.
“Arista again achieves record revenue and profitability for Q2 2023,” said Jayshree Ullal, President and CEO of Arista Networks. “Our customers now represent more than 75 million cumulative cloud networking ports.”
The company said its adjusted gross margin stood at 61.3% in the second quarter, a contraction of 60 basis points compared to a year-ago period. For this quarter, the company expects its adjusted operating margin to be 41%.
Moreover, the Q3 revenue is seen in the range of $1.45 billion to $1.5 billion, coming in ahead of the consensus of $1.39 billion.
Ita Brennan, Arista’s CFO, said, “In spite of the return to shorter lead times and reduced visibility, we are executing well with gradual incremental improvements to our 2023 outlook which now calls for year-over-year growth in excess of 30%.”
The jump in ANET stock comes on the back of consistent buying from Congressman Michael McCaul. Most recently, Rep. McCaul disclosed in July that he acquired more ANET shares on June 21, when the stock closed at $151.51.
Arista shares were seen trading above $175 apiece on Tuesday.
