Arista Networks Set For Q4 Earnings Growth, Fueled by AI-Driven Data Center Demand: Retail's Uncertain

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.

ANET sentiment and message volume February 18, 2025, as of 2:30 am ET | Source: Stocktwits

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.

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