Arista Networks Q4 Results Strong Amidstock Concerns

Arista Networks reported solid Q4 earnings, yet shares fell. Despite increased guidance for 2025, investor anxiety over white-box competition and Meta revenue declines could influence stock sentiment. Is this a buying opportunity?

Date: 22-02-2025

AI Rating: 6

Earnings Per Share (EPS)
Arista reported adjusted EPS of $0.63, which is a 25% increase compared to the prior year. This outperformed analyst expectations of $0.57. Such positive EPS growth signals health in company operations, thus likely supporting stock price stability.

Revenue Growth
The company realized a 25% revenue increase for Q4, totaling $1.93 billion, exceeding the analyst forecast of $1.9 billion. With an additional projection of 17% revenue growth for the full year 2025, this optimistic forecast may indicate potential positive momentum for Arista's stock prices.

Net Income
Detailed information on net income is not provided; therefore, we cannot analyze its impact on stock performance.

Profit Margins
Profit margins were not explicitly mentioned in the text, preventing us from evaluating their influence on investor sentiment or stock prices.

Free Cash Flow (FCF)
Arista generated $3.7 billion in free cash flow over the year, which is a significant amount that provides room for future investments or stock buybacks. High free cash flow is generally positive and can bolster investor confidence.

Return on Equity (ROE)
No ROE data is presented, so we cannot assess its effect on stock valuation.

Overall, despite solid revenue and EPS growth, the market's reaction may be influenced by concerns about competition and specific declines in revenue from key customers like Meta. The increase in deferred revenue suggests a positive future outlook, which may mitigate some investor concerns, but the caution surrounding white-box competition remains a significant factor to consider.

Stocks: ANET META MSFT ORCL