Why an Ugly 2020 Won't Change the Long-Term Buy Thesis for Arista Networks Stock
The year 2020 was already going to be a ho-hum one for Arista Networks (NYSE: ANET), and the coronavirus pandemic certainly hasn't changed that. As expected, the first quarter notched a year-over-year decline in sales, the second quarter is likely to shape up similarly to Q1, and the overall outlook for the balance of the year is cloudy at best.
Nevertheless, though the world getting thrust into a digital-first operating model hasn't necessarily helped Arista in the short term as many companies are looking to keep expenses down, the long-term thesis underpinning the network nuts-and-bolts provider remains intact.
Arista Networks' first-quarter 2020 revenue came in at $523 million, near the bottom of guidance provided a few months ago and good for a year-over-year decline of 12%. Adjusted net earnings were $162 million (down 14%), and adjusted earnings per share fell 13%, getting a slight benefit from Arista's ongoing share-repurchase program.
Source Fool.com
