Feb 18 (Reuters) - Arista Networks ( ANET ) forecast
first-quarter revenue above Wall Street estimates on Tuesday,
anticipating higher demand for its cloud networking gear from a
boom in artificial intelligence applications and chips.
The results underscore growing demand for advanced
networking infrastructure capable of supporting complex AI
workloads.
As more enterprises adopt AI technologies, Arista stands to
benefit from increased demand for advanced networking
capabilities to support these initiatives.
Analysts anticipate that Arista will continue to benefit
from the ongoing digital transformation across industries and
the increasing demand for robust networking solutions.
The company's prospects are further bolstered by increased
capital expenditure from major cloud players, including
Microsoft ( MSFT ) and Meta Platforms ( META ), which bodes well
for Arista as a key supplier in this space.
Arista completed a four-for-one stock split in December, as
a result of which each shareholder received three additional
shares.
Peer Juniper Networks ( JNPR ) earlier this month topped
analysts' estimates for preliminary fourth-quarter revenue and
profit.
Arista forecast first-quarter revenue in the range of $1.93
billion to $1.97 billion, compared with estimates of $1.91
billion, according to data compiled by LSEG.
Its revenue for the fourth quarter ended December 31 came in
at $1.93 billion, slightly above analysts' estimate of $1.90
billion.
On an adjusted basis, the company earned 65 cents per share,
compared with profit of 52 cents apiece in the previous year.