Arista Networks Inc., the cloud-networking solutions provider, reported fourth-quarter and year-end results as well as a first-quarter outlook that beat expectations, sending its shares significantly higher in extended trading Thursday.
shares rose about 7% after hours, after falling 0.3% in the regular session to close at $311.26.
“I am pleased with Arista’s return to growth in Q4 2020,” said Jayshree Ullal, president and chief executive of Arista Networks, in a statement. “With our laser focus on customer success, pristine financials and transformative innovations, Arista is well positioned to continue our momentum in the post-pandemic era.”
The company reported fourth-quarter net income of $183 million, or $2.31 a share, compared with $260.7 million, or $3.25 a share, in the year-ago period. Adjusted earnings were $2.49 a share, adjusted for stock-based compensation and more. Revenue rose to $648.5 million from $552.5 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $2.39 a share on revenue of $629.9 million.
For the full year, the Santa Clara, Calif.-based company posted net income of $634.6 million, or $7.99 a share, compared with $859.9 million, or $10.63 a share, in fiscal year 2019. Adjusted earnings were $9.04 a share, taking into account stock-based compensation, income taxes and more. Revenue fell to $2.32 billion from $2.41 billion the previous year. Analysts had expected earnings of $8.94 a share on revenue of $2.29 billion.
Arista expects first-quarter revenue of $630 million to $650 million, while analysts had forecast earnings of $2.27 a share on revenue of $609 million.
Shares of Arista have risen nearly 6% so far this year, compared with the S&P 500 Index’s
4.9% rise. The company’s stock is up 13.2% in the past three months.