2024-07-28 09:17:53 ET
Summary
- Arista Networks is positioned for strong eFY24 with q1'24 beat and raise as customers begin the next refresh cycle after destocking inventory.
- Arista Networks will likely participate in the next wave of spending as GPUs have become more abundant, leading to firms investing more heavily in networking equipment.
- I anticipate Arista to generate $1.65b in revenue and adjusted EPS of $1.68/share in eq2'24. This should mark the beginning of the upcycle going forward.
Arista Networks ( ANET ) is positioned for a strong eFY24 as the network equipment industry takes a turn into bullish territory. With management’s q1’24 beat and raise, customers’ digestion of their equipment inventory builds, and the drive to build out the networking component to cater to the high-speed demands of AI/ML, I believe Arista is in the beginning phase of the next cycle and should realize significant top-line growth and margin expansion....
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Arista Networks Is Poised For A Major Upcycle (Earnings Preview)