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Arista Revenue Beat Not Big Enough; Outlook Disappoints, Shares Fall

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Arista Networks ( ANET ) reported fourth-quarter earnings that handily beat views but revenue edged estimates and its sales and gross margin outlook for the March quarter disappointed, sending shares down in late trading.

[ibd-display-video id=3149582 width=50 float=left autostart=true] Arista, ranked No. 1 in the IBD 50 roster of growth stocks, said that adjusted fourth-quarter earnings were $1.71 a share, up 64% from a year ago, with revenue rising 43% to $468 million, topping consensus estimates.

A year earlier, Arista Networks earned $1.04 a share on sales of $328 million. Analysts expected Arista Networks to report earnings of $1.45 a share on sales of $464 million for the period ended Dec. 31.

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For the March quarter, Arista forecast revenue of $459 million , just above estimates of $457 million. Arista said it expects gross margin to slip to 63% to 65% from 66% in the fourth quarter. It did not issue full-year 2018 guidance.

Shares in the maker of computer networking gear for high-performance data centers tumbled by more than 12% to 270 in after-hours trading on the stock market today .

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A fierce rival of Cisco Systems ( CSCO ), Arista sells network switches that speed up communications among racks of computer servers packed into data centers. Santa Clara, Calif.-based

Arista's customers include Microsoft ( MSFT ), Amazon.com [ticker symb=AMZN ]and Facebook ( FB ). Cisco has recently gained more traction with those type of customers, analysts say.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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