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LONDON, UK / ACCESSWIRE / December 13, 2017 / Active-Investors free earnings report on Arista Networks, Inc. (NYSE: ANET) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=ANET. Arista Networks posted its third quarter fiscal 2017 (Q3 FY17) results on November 02, 2017. The leading software-driven cloud networking solutions provider posted better than expected revenues and earnings results. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Arista Networks most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
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Earnings Highlights and Summary
During the third quarter of the fiscal year 2017 (Q3 FY17), Arista's revenue grew 50.77% to $437.63 million compared to $290.26 million in Q3 FY16. The reported quarter's revenue numbers beat analysts' estimates of $417.70 million.
Arista's gross profit surged 50.53% to $280.62 million in the reported quarter compared to $186.42 million in Q3 FY16. The Company's non-GAAP gross profit was $281.73 million in Q3 FY17 compared to $187.38 million in Q3 FY16, reflecting a growth of 51.42%.
Arista's operating income surged 123.47% to $140.83 million in Q3 FY17 compared to $63.02 million in Q3 FY16. The Company's non-GAAP operating income was $168.84 million in the reported quarter compared to $87.16 million in Q3 FY16, reflecting growth of 93.71%. Arista launched Any Cloud software platform, in the reported quarter, which would help in reducing operational costs and complexity for enterprises.
Arista's net income was $133.72 million in Q3 FY17 compared to $51.26 million in Q3 FY16, reflecting growth of 160.89% on a y-o-y basis. The Company's non-GAAP net income surged 109.58% to $128.22 million in Q3 FY17, on a y-o-y basis, compared to $61.18 million in Q3 FY16. Arista's diluted earnings per share (EPS) advanced 143.48% to $1.68 in Q3 FY17, compared to $0.69 in Q3 FY16. The Company's adjusted net earnings, which were adjusted for non-recurring gains, amounted to $1.62 per share, for the reported quarter, beating analysts' estimates of $1.21 per share.
Arista Networks' Segment Details
Arista reported Product segment's revenue of $380.34 million in Q3 FY17 compared to $254.24 million in Q3 FY16, advancing 49.60% on a y-o-y basis. Cost of revenue of this segment was $145.87 million in Q3 FY17 compared to $94.78 million in Q3 FY16, surging 53.91%.
The service segment's revenues surged 59.03% to $57.29 million in Q3 FY17 compared to $36.02 million in Q3 FY16. Cost of revenue of this segment was $11.14 million in Q3 FY17 compared to $9.06 million in Q3 FY16, increasing by 22.92%.
International segment's revenues were $128.30 million in Q3 FY17, up by approximately 25.00% compared to Q3 FY16 figures.
Cash Matters
Arista had cash and cash equivalents of $854.48 million as on September 30, 2017, compared to $500.48 million as on September 30, 2016. Net inflow from operating activities was $447.96 million in the reported quarter compared to $108.73 million in Q3 FY16.
Outlook
Arista anticipates revenues in the range of $450.00 million to $464.00 million in Q4 FY17. The Company expects non-GAAP gross margin in the band of 63.00% to 65.00% and non-GAAP operating margin in the range of 30.00% to 32.00% in Q4 FY17.
Arista's management expects research and development (R&D) spending to increase in the next quarter. The Company also expects its R&D, sales and marketing (S&M), general and administrative (G&A) expenses as percentage of revenues, to be approximately, 20.00%, 10.00%, and 3.00% respectively, over the long-term.
Stock Performance Snapshot
December 12, 2017 - At Tuesday's closing bell, Arista Networks' stock dropped 2.43%, ending the trading session at $218.25.
Volume traded for the day: 706.18 thousand shares.
Stock performance in the last three-month – up 24.79%; previous six-month period – up 44.49%; past twelve-month period – up 134.32%; and year-to-date – up 125.53%
After yesterday's close, Arista Networks' market cap was at $15.45 billion.
Price to Earnings (P/E) ratio was at 45.32.
The stock is part of the Technology sector, categorized under the Diversified Computer Systems industry.
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