Why Arista Networks Stock Soared Today
Shares of Arista Networks (NYSE: ANET) soared on Tuesday and it had nothing to do with the U.S. presidential election. Rather, the company reported results for the third quarter of 2020. Q3 results beat expectations on both the top and bottom lines, though both numbers declined from the same quarter last year. But investors are blocking out the quarterly declines -- as of 12:15 p.m. EST, Arista Networks stock was up 16%. Instead, investors are optimistically looking toward the future, because management guided for revenue growth in the upcoming fourth quarter.
For Q3, Arista Networks reported revenue of $605 million. Management was quick to note this was a 12% sequential improvement, but it was almost 8% lower than the same quarter last year. Many companies have cut back or delayed spending for their cloud networks because of the COVID-19 pandemic, which affects Arista. That said, the company was still solidly profitable with net income of $168 million, translating to $2.12 per share.
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Source Fool.com
