Is Arista Networks Stock a Buy?
Following better-than-expected third-quarter results, Arista Networks' (NYSE: ANET) management anticipated double-digit revenue growth next year. In addition, the highly profitable cloud networking specialist has built a rock-solid balance sheet. So does that mean Arista stock is a buy?
After several quarters of uncertainties because of the volatile quarterly spendings of a few giant cloud customers, Arista's long-term outlook looks brighter.
Granted, Q3 revenue dropped 7.5% year over year to $605.4 million, but it exceeded the forecast range of $570 million to $590 million. Fourth-quarter revenue should also grow by 13.1% year over year, based on the midpoint of management's guidance range of $615 million to $635 million. These positive short-term results are due to the improved demand for the company's solutions across the entire portfolio. In particular, CFO Ita Brennan highlighted increased win rates with enterprises and service providers (telecommunication providers).
Source Fool.com
