Arista Networks Set For Q4 Earnings Growth, Fueled by AI-Driven Data Center Demand: Retail's Uncertain
Synopsis
Analysts at Piper Sandler believe that Arista will be the most discussed winner of the $500 billion Stargate AI project, thanks to its strong portfolio of high-end Ethernet switches.
Shares of Arista Networks Inc. (ANET) will be in focus heading into Tuesday as the company is scheduled to announce its fourth-quarter (Q4) and fiscal year 2024 results after the markets close.
Arista Networks’ stock has been rising recently, gaining over 21% in the past six months. Its one-year gains have been even more impressive, with a rise of nearly 65%.
Wall Street expects Arista to post earnings per share (EPS) of $0.57 during the fourth quarter, compared to $0.52 a year ago.
The Santa Clara, California-headquartered company makes network switches that are used in large data centers.
Its equipment caters to various needs like cloud computing and high-frequency trading environments. The rise in popularity of artificial intelligence (AI) solutions has led to a surge in data center demand and, thereby, networking switches that companies like Arista Networks make.
Analysts at Piper Sandler believe that Arista will be the most discussed winner of the $500 billion Stargate AI project, according to The Fly. The brokerage thinks Arista’s strength in the high-end Ethernet switching portfolio will help it pull ahead of its peers.
According to the brokerage, Arista currently holds a 30% market share in the high-end data center switching segment. It sees this segment as a more than $6 billion serviceable market over the next five years, or $1.25 billion annually.
Retail sentiment on Stocktwits around the Arista stock is currently divided, hovering in the ‘neutral’ (50/100) territory.
However, some users expressed their bullish outlook for the stock, with one user pointing out that Arista’s shares have fallen over 10% over the past five trading sessions.
Arista Networks’ stock currently has a trailing twelve-month (TTM) price-to-earnings ratio of 51.38. Its rival, Cisco Systems Inc., has a PE multiple of 28.45, while Juniper Networks Inc. has a PE multiple of 42.50.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.