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Will Healthy Product Revenues Boost Arista's (ANET) Q2 Earnings?
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Arista Networks, Inc. (ANET - Free Report) is scheduled to report second-quarter 2024 results on Jul 30, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 14.37%. The company is expected to have earned higher revenues from the product segment, backed by growing demand for its Etherlink portfolio and a strong focus on innovation.
Factors at Play
In the second quarter, Arista launched its Etherlink AI platforms for optimal network performance across the most demanding AI workloads, including training and inferencing. Powered by new AI-optimized Arista EOS features, the new product suite can support more than 100,000 XPUs with 2-tier network topologies. The solution eliminates the need of complex multi-tier networks and optimizes the performance of AI applications. It reduces the number of optical transceivers, thereby lowering costs and enhancing reliability. Arista’s offering includes a range of fixed, modular and distributed switching platforms that outperform proprietary technologies and boost network performance for large AI clusters.
Ethernet is emerging as a vital infrastructure component for both front and back-end AI data centers. Arista is steadily advancing its portfolio of Etherlink AI platforms to capitalize on this emerging trend.
Arista has also joined forces with NVIDIA for a technology demonstration of how its EOS-based remote AI agent allows the combined, interdependent AI cluster to be managed as a single solution.
The demonstration marks the first step in achieving a multi-vendor, interoperable ecosystem that enables control and coordination between AI networking and AI compute infrastructure and establishes Arista as a leading player for providing optimal GPU and network-coordinated performance.
This technology represents a significant advancement in AI data center management, addressing key challenges associated with large AI clusters. These developments are likely to have a favorable impact on the company’s net sales in the Product segment.
For the June Quarter, the Zacks Consensus Estimate for Product revenues is pegged at $1.38 billion, indicating growth from $1.26 billion in the year-ago quarter.
The Zacks Consensus Estimate for ANET’s total revenues is pinned at $1.64 billion. It generated revenues of $1.46 billion in the prior-year quarter. The consensus mark for earnings is currently pegged at $1.94 per share, indicating a solid improvement from $1.58 recorded in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Arista this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +1.72%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Arista currently sports a Zacks Rank #1.
Other Stocks to Consider
Here are some other companies that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +2.21% and a Zacks Rank of 3 at present. The company is scheduled to report quarterly numbers on Jul 30.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.32%. It has a Zacks Rank of 3 at present. The company is scheduled to report quarterly numbers on Aug 1.
Image: Bigstock
Will Healthy Product Revenues Boost Arista's (ANET) Q2 Earnings?
Arista Networks, Inc. (ANET - Free Report) is scheduled to report second-quarter 2024 results on Jul 30, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 14.37%. The company is expected to have earned higher revenues from the product segment, backed by growing demand for its Etherlink portfolio and a strong focus on innovation.
Factors at Play
In the second quarter, Arista launched its Etherlink AI platforms for optimal network performance across the most demanding AI workloads, including training and inferencing. Powered by new AI-optimized Arista EOS features, the new product suite can support more than 100,000 XPUs with 2-tier network topologies. The solution eliminates the need of complex multi-tier networks and optimizes the performance of AI applications. It reduces the number of optical transceivers, thereby lowering costs and enhancing reliability. Arista’s offering includes a range of fixed, modular and distributed switching platforms that outperform proprietary technologies and boost network performance for large AI clusters.
Ethernet is emerging as a vital infrastructure component for both front and back-end AI data centers. Arista is steadily advancing its portfolio of Etherlink AI platforms to capitalize on this emerging trend.
Arista has also joined forces with NVIDIA for a technology demonstration of how its EOS-based remote AI agent allows the combined, interdependent AI cluster to be managed as a single solution.
The demonstration marks the first step in achieving a multi-vendor, interoperable ecosystem that enables control and coordination between AI networking and AI compute infrastructure and establishes Arista as a leading player for providing optimal GPU and network-coordinated performance.
This technology represents a significant advancement in AI data center management, addressing key challenges associated with large AI clusters. These developments are likely to have a favorable impact on the company’s net sales in the Product segment.
For the June Quarter, the Zacks Consensus Estimate for Product revenues is pegged at $1.38 billion, indicating growth from $1.26 billion in the year-ago quarter.
The Zacks Consensus Estimate for ANET’s total revenues is pinned at $1.64 billion. It generated revenues of $1.46 billion in the prior-year quarter. The consensus mark for earnings is currently pegged at $1.94 per share, indicating a solid improvement from $1.58 recorded in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Arista this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +1.72%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Arista Networks, Inc. Price and EPS Surprise
Arista Networks, Inc. price-eps-surprise | Arista Networks, Inc. Quote
Zacks Rank: Arista currently sports a Zacks Rank #1.
Other Stocks to Consider
Here are some other companies that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Pinterest (PINS - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3 at present. PINS is set to release quarterly numbers on Jul 30. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +2.21% and a Zacks Rank of 3 at present. The company is scheduled to report quarterly numbers on Jul 30.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.32%. It has a Zacks Rank of 3 at present. The company is scheduled to report quarterly numbers on Aug 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.