Arista Networks Inc. (ANET) has confirmed the release date for its Q4 2021 earnings report, which will be on Monday, February 14, 2022, after market close.
What to look for was
During the third quarter, the company indicated that it was witnessing robust demand for its pioneering client to cloud networking portfolio in all client segments. Despite the supply chain constraints experienced globally, the company expects to report another record quarter when it announces fiscal Q4 2021 results on February 14.
Earnings: Stockearning’s Estimated EPS for the fiscal Q4 2021 is expected to be $0.74per share representing YoY growth of 19.35%. In the same quarter a year ago, the company had earnings per share of $0.56. Arista-Networks produced an earnings surprise of 3.48% in Q3 2021 with an EPS of $0.60. Historical EPS Performance shows that in the past 12 quarters, the company has topped EPS estimates 30 times (100%) and never missed (0%).
Revenue: The company expects revenue of $750.58 million, representing a YoY increase of $21.91%. In the last quarter, the company had revenue of $748.7 million, representing a 5.8% increase sequentially and 23.7% increase YoY.
Stock movement: ANET shares have gained 21.7% since the company released its third-quarter earnings. Interestingly, ANET shares have been UP 17 times out of the past 30 quarters. So, the historical price reaction suggests a 56% probability of the share price going UP once the company reports its fiscal Q4 2021 earnings. According to Stockearning’s algorithm, the predicted first-day move is 8%, while the predicted move on the seventh day is 9%.
What analysts are saying
Vertical Group analyst Jon Lopez upgraded the stock from Hold to Buy with a price target of $143.5 on the stock.
Citi analyst Jim Suva upgraded Arista Networks from Hold to Buy, but his price target remained unchanged at $150. Suva told investors in a research note that while the stock has dropped 17% since the start of the year, ANETs fundamentals are good, with customer expenditure growing. The analyst sees the Arista Network's February 14 earnings release as a favorable catalyst and advises investors to buy the stock on the recent downturn. Suva writes in a research note that Arista Networks is "not a cheap value stock," but rather a "top high growth stock." KeyBanc analyst Thomas Blakey commenced coverage on ANET with a Buy rating and a price target of $165. The analyst believes ANET's multiple increases are linked to expected positive Enterprise revisions and that his current above-consensus Enterprise projections are likely "conservative."
Morgan Stanley analyst Meta Marshall downgraded ANET from Buy to Hold but upgraded his price target from $115 to $138. According to Marshall, who compares the present valuation setting to the 100G cycle in 2017, the stock increase following Arista's analyst day reflects enthusiasm surrounding the impending 200G/400G hyperscale upgrading cycle. She predicts a "better balanced" risk/reward within the next 12 months, citing "more 2023 events" as bull thesis drivers.
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