Arista Networks (NYSE:ANET) earnings for the third quarter of 2019 have ANET stock taking a beating on Friday. This is despite the company’s adjusted earnings per share of $2.69, which beat out Wall Street’s estimate of $2.41. Revenue of $654.42 million also comes in above analysts’ estimates of $653.30 million.
Here’s what else is worth mentioning from the Arista Networks earnings report.
- Adjusted EPS for the quarter is 27.49% higher YoY than $2.11.
- Revenue is up 16.17% from $563.31 million in the same period of the year prior.
- Operating income of $228.61 million is a 26.47% increase from $180.77 in the third quarter of 2018.
- The Arista Networks earnings report also has net income coming in at $208.90 million.
- This is a 23.96% improvement over the company’s net income of $168.52 million in Q3 2018.
Jayshree Ullal, President and CEO of Arista Networks, has this warning for ANET stock investors.
“In Q3 2019 we continued to see the adoption of our cloud networking technology in more diverse environments. While we expect a sudden softening in Q4 with a specific cloud titan customer, we are committed to a sustainable and strong foundation of long-term growth, innovation and profitability.”
The Arista Networks earnings report also includes its outlook for the fourth quarter of 2019. This has it expecting revenue between $540 million and $560 million. That’s bad news for ANET stock with Wall Street looking for revenue of $680.74 million during the quarter.
ANET stock closed out the day down 24.23% on Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.