Arista Offers Network Platforms for SK Telecom's 5G Network

Arista Networks, Inc. ANET recently stated that it is providing network platforms for SK Telecom’s — South Korea’s largest wireless carrier — 5G network. The company is working with SK Telecom to deliver a 5G open architecture with programmable automation that will scale to support the latter’s customers.

By installing Arista’s network switches optimized for 5G in its infrastructure, SK Telecom has been able to provide high quality 5G services quickly to its customers. Arista is providing SK Telecom with universal spine and leaf network switches, combining routing and switching to reduce complexity and significantly improve scale without compromising performance at speeds of 100 plus Tbps.

The company’s strategy of leveraging merchant silicon from multiple suppliers has expanded product portfolio and increased its ability to offer products at lower prices. This has also helped it focus on developing software like Extensible Operating System (EOS) and CloudVision. While EOS is core to its cloud networking solutions for next-generation data centers and cloud networks, CloudVision is a network-wide approach for workload orchestration, workflow automation and real-time telemetry as a turnkey solution for cloud networking.

Arista’s product portfolio facilitates the implementation of high-performance, highly scalable and appropriate solutions for every environment. Its network switches enable functionality such as 100GbE aggregation, large routing tables, high resiliency, hybrid cloud traffic patterns, lossless connectivity and real-time monitoring in a single chassis, meeting the requirements of commercial, private and hybrid clouds.

Arista continues to benefit from the expanding cloud networking market, owing to strong demand for scalable infrastructure. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance along with programmability that enables integration with third-party applications for network management, automation and orchestration.

Moreover, Arista is poised to benefit from strong demand for its data center switches. Continued spending on IT infrastructure products (server, enterprise storage and Ethernet switches) for deployment in cloud environments is likely to benefit the company. Markedly, its switches and routers support the high-end cloud networking market that requires fast throughput at low cost. The robust product portfolio is aiding the company to win customers on a regular basis, in turn, boosting its top line.

Apart from driving cloud area networking, Arista boasts the number one market position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. The company aims to sustain profitable revenue growth and healthy cash generation in 2019 and beyond on the back of industry-leading product offerings.

Arista has long-term earnings growth expectation of 19.1%. It topped earnings estimates in each of the trailing four quarters, delivering average positive surprise of 11.5%. The stock has returned 9.1% compared with the industry’s growth of 17.1% year to date.

Arista currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader industry are PCTEL, Inc. PCTI, Nokia Corporation NOK and T-Mobile US, Inc. TMUS, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PCTEL surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 146.4%.

Nokia surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 89.3%.

T-Mobile surpassed earnings estimates in each of the trailing four quarters, the average surprise being 17.9%.

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