Arista Networks crushes Q3 earnings targets

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Arista Networks handily topped third quarter financial targets on Thursday. The networking player reported earnings of $168.5 million, or $2.08 a share, on revenue of $563.3 million, up 8 percent from a year ago. Non-GAAP earnings were $2.11 a share.

Wall Street was looking for non-GAAP earnings of $1.84 a share on revenue of $548.71 million.

In terms of guidance, Arista is calling for sales of $582 million to $594 million for the fourth quarter. Wall Street was expecting sales of $586.2 million. Shares of Arista climbed nearly 7 percent after hours.

As a challenger to industry leader Cisco Systems, Santa Clara, Calif.-based Arista builds switches that handle traffic at Internet data centers for companies such as Facebook, Yahoo and Citigroup, and is led by former Cisco exec Jayshree Ullal.

In prepared remarks, Ullal said:

“As Arista completes its first decade of customer shipments, I am proud of the many milestones we have achieved. These include our entry into the prestigious S&P 500, cumulative shipments of more than 20 million cloud networking ports and another quarter of record earnings in Q3 2018.”

Back in August, Arista and Cisco reached an agreement in their years-long court battle over patent infringement and antitrust claims, with Arista agreeing to pay Cisco $405 million to dismiss all pending district court and ITC litigation between the two companies.

ut the patent battle between the rivals began in December 2014, when Cisco alleged that Arista had repeatedly lifted the company’s inventions and patents. Cisco said its intellectual property in part led to the Arista IPO earlier that year.

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