Why Computer Networking Company Arista's Shares Are Surging Today

Arista Networks Inc ANET shares are trading higher by around 10% after the company reported Q3 FY23 results.

Revenue grew 28.3% Y/Y to $1.509 billion, beating the consensus of $1.480 billion.

Adjusted gross margin stood at 63.1%, an expansion from 61.2% a year ago. Adjusted operating margin expanded to 46.1% from 41.8% prior year.

Adjusted EPS of $1.83, surpassing the consensus of $1.58.

Operating cash flow stood at $1.51 billion as of September 2023. As of September 30, 2023, cash and equivalents stood at $1.75 billion.

Ita Brennan, CFO, said, "The team continues to demonstrate strong discipline, working to normalize supply chain metrics while delivering incremental improvements to our 2023 outlook, which now calls for year-over-year revenue growth in excess of 33%."

Q4 FY23 Outlook: ANET expects revenues of $1.500 billion-$1.550 billion vs. consensus of $1.47 billion, adjusted gross margin of around 63%, and adjusted operating margin of approximately 42%.

Price Action: ANET shares are up 9.83% at $193.00 premarket on the last check Tuesday.