Arista Networks ANET announces its next round of earnings this Monday, August 02. Here is Benzinga's everything-that-matters guide for this Monday's Q2 earnings announcement.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Analysts predict Arista Networks will report earnings of $2.54 per share on revenue of $687.32 million. Arista Networks EPS in the same period a year ago totaled $2.11. Sales were $540.57 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be up 20.38%. Revenue would be up 27.15% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 2.38 | 2.39 | 2.21 | 1.95 |
| EPS Actual | 2.50 | 2.49 | 2.42 | 2.11 |
| Revenue Estimate | 642.12 M | 628.93 M | 581.33 M | 529.73 M |
| Revenue Actual | 667.56 M | 648.48 M | 605.43 M | 540.57 M |
Want Real-Time Earnings Calendar Updates?
Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.
Stock Performance
Shares of Arista Networks were trading at $381.01 as of July 29. Over the last 52-week period, shares are up 45.73%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Arista Networks is scheduled to hold the call at 16:30:00 ET and can be accessed here.
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