What happened
Shares of Arista Networks (ANET 1.43%), a cloud computing networking-solutions company, rose today after the company reported better-than-expected, third-quarter financial results and issued solid fourth-quarter guidance.
The tech stock climbed higher through much of today's trading and was up by 5.6% at the end of the day.
So what
Arista's Q3 revenue increased 57% from the year-ago quarter to $1.17 billion, which outpaced analysts' consensus estimate of $1.06 billion.
Additionally, the company's non-GAAP (adjusted) earnings per share of $1.25 was up from $0.74 in the year-ago quarter and was ahead of Wall Street's average estimate of $1.04.
Arista's CEO Jayshree Ullal said in a press release that the company is outpacing its peers with record revenue in the quarter and added that "We are entering the next phase of Arista's evolution in products, customer intimacy and new market expansion."
Now what
In addition to the company's strong results for Q3, investors were also excited to see that Arista's management issued Q4 revenue guidance that is ahead of Wall Street's expectations.
Management said that revenue will be in the range between $1.75 billion to $1.2 billion, which is significantly higher than analysts' consensus estimate of $1.09 billion.
The company's latest results and strong guidance also caused a handful of analysts to increase their price target for Arista's stock and spurred Bank of America analyst Tal Liani to upgrade Arista's stock to buy from underperform.
All of which added to investors' optimism in Arista Networks' stock today.
