By Dhirendra Tripathi
Investing.com – Arista Networks stock (NYSE:ANET) rose 5.6% on Tuesday after the company projected its strong sales momentum would continue as demand for its low-cost open-source software-based products grows.
The company said 2021 marked the first time cash flows crossed a billion dollars in a year, an outcome of the appeal of its products to networking gear buyers looking to do more programming on their systems.
After growing its revenue by 27% in the year to $2.9 billion, the company is now projecting its first-quarter revenue to grow at the same pace to $850 million at the center of its guidance range. The revenue for the quarter through March could even touch $860 million, according to the company’s guidance.
Adjusted gross margin is seen eroding to anywhere between 63% and 64% in the current quarter compared to 64.7% in the same period a year ago.
Arista’s fourth-quarter revenue grew 10% to exceed $824 million.
Adjusted profit per share in the quarter rose 32% to 82 cents to easily beat estimates.