Arista Networks beats Q1 expectations, guidance light

The networking player reported a steep decline in year-over-year revenue.

Arista Networks published better-than-expected first quarter financial results on Wednesday despite a steep decline in year-over-year revenue. The networking player reported earnings of $138.4 million, or $1.73 a share, on revenue of $523 million, down 12% from a year ago. Non-GAAP earnings were $2.01 a share. 

Wall Street was looking for non-GAAP earnings of $1.81 a share on revenue of $517.8 million.

For the second quarter Arista said it projects revenue between $520 million and $540 million. Analysts are looking for revenue of $542 million. Shares of Arista were down over 6% after hours.

As a challenger to industry leader Cisco Systems, Santa Clara, Calif.-based Arista builds switches that handle traffic at Internet data centers for companies such as Facebook, Yahoo and Citigroup, and is led by former Cisco exec Jayshree Ullal.

In prepared remarks, Ullal said:

"Arista delivered solid Q1 2020 financial results despite the global pandemic that we all are experiencing. We are committed to our employees' safety while bringing value to our customers, shareholders and community in these unpredictable times and believe we will emerge stronger in the long term."