Arista shares soar as Q4 revenue, EPS top expectations, forecast higher as well

Arista said it is "well positioned" to "continue our momentum."

Data center switch giant Arista Networks this afternoon reported Q4 revenue and profit that topped analysts' expectations, and an outlook for the current quarter higher as well. 

The report sent Arista shares surging by 12% in late trading

CEO Jayshree Ullal remarked that she was "pleased with Arista's return to growth in Q4 2020," adding that "with our laser focus on customer success, pristine financials and transformative innovations, Arista is well positioned to continue our momentum in the post pandemic era."

CFO Ita Brennan commented that the company's employees "showed great resilience and flexibility throughout 2020, maintaining operational excellence, while executing well on our market and product diversification initiatives."

Revenue in the three months ended in December rose to $648.5 million, yielding EPS of $2.49, excluding some costs.

Analysts had been modeling $630 million and $2.39 a share. 

Arista said its gross profit margin as a percentage of revenue rose ever-so-slightly to 65% from 64.7% a year earlier. 

For the current quarter, the company sees revenue of $630 million to $650 million. That compares to consensus for $609 million and $2.27 per share.

The company's gross profit margin is projected in a range of 63% to 65% for the quarter.