Why Arista Networks Stock Is Advancing After Hours

Arista Networks Inc ANET shares are trading higher in Monday's after-hours session after the networking equipment company reported better-than-expected financial results. 

What Happened: Arista Networks said second-quarter revenue increased 38.7% year-over-year to $1.459 billion, which beat the consensus estimate of $1.38 billion, according to Benzinga Pro. The company reported quarterly earnings of $1.58 per share, which beat analyst estimates of $1.44 per share. 

The gross margin came in at 61.3%, down from 61.9% on a year-over-year basis, but up from 60.3% sequentially. Arista said it surpassed 75 million cloud network ports shipped cumulatively during the quarter. 

"In spite of the return to shorter lead times and reduced visibility, we are executing well with gradual incremental improvements to our 2023 outlook, which now calls for year-over-year growth in excess of 30%," said Ita Brennan, CFO of Arista Networks.

Arista sees third-quarter revenue in the range of $1.45 billion to $1.5 billion. The company anticipates gross margin of approximately 62% in the third quarter. 

Management will hold a conference call to discuss these results at 4:30 p.m. ET.

ANET Price Action: Arista Networks shares were up 11.68% after hours at $173.20, according to Benzinga Pro.

Photo: Michal Jarmoluk from Pixabay.