Shares of Arista Networks ticked higher on Monday’s extended trading following impressive fourth-quarter results.
The American computer networking company popped 7.15% to $131.60 per share, adding 8.78 points.
During the trading session, it traded 1.56% or 1.89 points higher to $122.82 per share.
Accordingly, the firm now stands with a market capitalization of $37.74 billion, holding about 307.28 billion shares outstanding.
In its latest earnings call, Arista Networks reported revenue of $824.50 billion, beating the analysts’ consensus of $790.10 million.
Subsequently, its product segment strengthened 28.90% year-over-year to $667.96 million.
Likewise, its service unit edged up 20.20% to $156.50 million from the prior year.
Consequently, the figure also reflected an annual increase of 27.10% from the same period of 2020.
Adjusted earnings per share posted at $0.82, significantly higher than the expected $0.74.
At the same time, its profit rose 33.00% from year-ago levels to $239.30 million. This number surpassed the $183.00 million a year earlier.
For the current quarter, Arista Networks said it expects revenue in the range of $840.00 million to $860.00 million.
Meanwhile, the market has an average forecast of $832.50 million.
Correspondingly, these impressive results mirrored that company’s continuing success in tapping into the efforts of enterprise clients.
Businesses now take steps to transition to 400G networking equipment. They aim to take full advantage of cloud capabilities for data collection and analysis.
Notably, Arista Networks was one of the pioneers in providing the top-of-the-line tools that most enterprises prefer.
Meanwhile, its share price has declined 13.62 % since the beginning of the year. This downturn is due to the broad weakness of the market sentiment.
Nevertheless, the cloud-software company still moves 54.16% higher than last year’s performance.
Arista Networks Outperforms Market
Furthermore, Arista Networks went against the rough trading session for the stock market.
The likelihood of a Russian invasion in Ukraine increased, dampening the risk-on sentiment worldwide.
In line with this, the S&P 500 closed 0.38% lower to 4,401.67 points. Then, the Dow Jones Industrial Average also slipped 0.49% to $34,566.17 points.
Arista also outperformed some of its rivals as Microsoft Corporation decreased 0.01% to $295.00.
At the same time, Cisco Systems Inc. skidded 1.34% to $53.18, and HP Inc. ticked lower 2.20% to $36.51.