Arista Networks Inc. (NYSE:ANET ) late Thursday [Feb 16, 2017 | 4:11pm] posted much better than expected fourth quarter earnings results and offered a very bullish outlook for Q1...

Written by StockNews.com

The Santa Clara-based cloud networking solutions giant reported adjusted Q4 EPS of $1.04, which was $0.22 better than the Wall Street consensus estimate of $0.82. Revenues surged 33.6% from last year to $328 million, also easily topping analysts’ view for $317.31 million. Arista also noted that non-GAAP gross margins were 64.4% in the latest period.

Looking ahead, ANET forecast Q1 revenues ranging from $320 to $330 million, well ahead of Wall Street’s current $304.23 million estimate. Additionally, Arista sees Q1 gross margins of 61% to 64%; with operating margins around 27%.

The company commented via press release:

“2016 was indeed a historic year for Arista, as we exceeded one billion dollars in annual sales within two years of becoming a public company,” stated Jayshree Ullal, Arista President and CEO. “Our customers are adopting cloud networking at an unprecedented pace.”

Commenting on the company’s financial results for the quarter, Ita Brennan, Arista’s CFO, said, “We are pleased with our outstanding financial performance in the fourth quarter, reflecting strong customer demand and consistent execution.”

Arista Networks Inc. shares jumped $9.28 (+9.26%) to $109.45 in after-hours trading Thursday. Year-to-date, ANET had gained 3.47% prior to today’s report, versus a 5.01% rise in the benchmark S&P 500 index during the same period.

ANET currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #4 of 53 stocks in the Technology – Communication/Networking category.