How did ANET's Q4 earnings surprise compare to previous quarters?

Arista Networks (ANET) reported its fourth-quarter (Q4) 2024 earnings, which surpassed expectations with a revenue of $1.93 billion, slightly above the consensus estimate of $1.90 billion. The company's adjusted earnings per share (EPS) were $0.65, beating the Zacks Consensus Estimate of $0.57 per share. This marks a notable achievement for ANET, as it is the fourth quarter in a row that the company has exceeded earnings expectations.

1. Earnings Performance:
   • Q4 2024's EPS of $0.65 represents a significant improvement from the $0.52 recorded in the same quarter the previous year.
   • This quarter's earnings surprise was approximately 14.04%, indicating a consistent track record of outperforming expectations.
2. Revenue Achievement:
   • Arista Networks reported revenue of $1.93 billion for Q4 2024, surpassing the Zacks Consensus Estimate by 1.94%.
   • This represents a substantial increase from the $1.54 billion recorded in the same quarter the previous year.
3. Comparison to Guidance:
   • Arista's performance in Q4 2024 exceeded its own guidance, which forecasted revenue in the range of $1.93 billion to $1.97 billion.
   • The company's gross margin was reported to be approximately 63% to 64%, indicating a strong profitability period.
4. Trends and Analysis:
   • Arista Networks has consistently delivered earnings surprises, with an average four-quarter earnings surprise of 15%.
   • The company's stock performance reflects investor confidence, with a notable four-for-one stock split aimed at making it more accessible to a broader investor base.

In conclusion, Arista Networks' Q4 2024 earnings performance demonstrates the company's continued strength and ability to exceed market expectations, driven by robust revenue growth and effective cost management.