Arista Networks Shares Up 5% Following Q3 Beat

Arista Networks (NYSE:ANET) shares gained more than 5% yesterday following the company’s reported Q3 results, with EPS of $1.25 coming in better than the Street estimate of $1.04. Revenue was $1.17 billion, compared to the Street estimate of $1.06 billion.

The company continues to benefit from Cloud Titan spend (Microsoft and Meta top customers), with demand visibility still into mid-2023, as well as share gains at enterprise customers. This growth is especially laudable given component supply constraints and de-commits, with Arista purchase commitments now at $4.3 billion (vs. $4.5 billion last quarter).

The company now expects over 45% topline growth for 2022, well ahead of its 30% target despite supply constraints.