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Arista (ANET) to Report Q3 Earnings: What's in the Cards?

Arista Networks, Inc. ANET is scheduled to report third-quarter 2020 results on Nov 2, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 7.1%. The bottom line surpassed the Zacks Consensus Estimate by 14 cents. Notably, Arista delivered a trailing four-quarter positive earnings surprise of 10%, on average.

The Santa Clara, CA-based cloud networking company is likely to have recorded higher revenues year over year, supported by overall healthy demand. However, due to the COVID-19 operating environment, Arista experienced some supply challenges that resulted in extended lead time and somewhat constrained shipments.

Factors at Play

During the third quarter, Arista made several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. The company partnered with Forescout Technologies, the world leader in device visibility and control, to reduce cybersecurity risks brought on by the explosive growth of IoT devices, increased network complexity and propagation of malware.

Arista also introduced a new enterprise-grade Software-as-a-Service offering for the flagship CloudVision platform. These developments are likely to have had a positive impact on the company’s top line.

For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $580 million, indicating an increase of 4.5% from the year-ago quarter’s reported figure. However, adjusted earnings per share are pegged at $2.23, which suggests a decline of 17.1% year over year.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Arista this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Arista’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at $2.23.

Arista Networks, Inc. Price and EPS Surprise

Arista Networks, Inc. Price and EPS Surprise
Arista Networks, Inc. Price and EPS Surprise

Arista Networks, Inc. price-eps-surprise | Arista Networks, Inc. Quote

Zacks Rank: Arista currently carries a Zacks Rank #3.

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Vishay Intertechnology, Inc. VSH is slated to release third-quarter 2020 results on Nov 3. It has an Earnings ESP of +6.45% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AGCO Corporation AGCO is scheduled to release third-quarter 2020 results on Nov 3. The company has an Earnings ESP of +6.07% and a Zacks Rank #1.

ArcBest Corporation ARCB has an Earnings ESP of +5.20% and a Zacks Rank of 1. The company is set to report third-quarter 2020 results on Nov 3.

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