Shares of Arista Networks Inc. (ANET) are surging over 18% today, after the company issued strong Q4 guidance, while reporting better-than-expected Q3 results. The stock has been trading in the range of $156.63 – $267.30 for the past one year, and is currently trading at $256.67, up $40.55 or 18.76% in the regular trading session Tuesday.
The company projects fourth-quarter revenue to range between $615 million – $635 million, with non-GAAP gross margin of 63% – 65%, and non-GAAP operating margin of about 37%. Twenty-four Wall Street analysts have a consensus revenue estimate of $610.87 million for the quarter.
The company’s Q3 GAAP net income was $168.4 million or $2.12 per share compared to $208.9 million or $2.59 per share last year.
Non-GAAP net income was $192.0 million or $2.42 per share versus $217.1 million or $2.69 per share in the third quarter of 2019. Analysts polled by Thomson Reuters expected earnings of $2.21 per share for the quarter. Analysts’ estimate typically exclude certain special items.
Revenue for the quarter was $605.4 million, a decline of 7.5%, compared to $605.4 million generated a year ago.
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