Arista Networks Inc (NASDAQ: ANET) fell in Friday trading despite reporting better-than-expected quarterly earnings.
The Santa Clara, California-based company on Thursday reported quarterly revenue of $467.9 million, an increase of 6.9% compared to the third quarter of 2017, and an increase of 42.7% from the fourth quarter of 2016. GAAP net income registered at $103.8 million, or $1.29 per diluted share, compared to GAAP net income of $58.8 million, or $0.79 per diluted share, in the fourth quarter of 2016.
Full-year revenue was $1.6 billion, an increase of 45.8% compared to fiscal year 2016. GAAP net income of $423.2 million, or $5.35 per diluted share, compared to GAAP net income of $184.2 million, or $2.50 per diluted share, in fiscal year 2016.
Said CEO Jayshree Ullal, “2017 represents a market tipping point with Arista’s disruptive software-driven architecture gaining mainstream acceptance as we surpassed 15 million cumulative ports of cloud networking”
This was the third consecutive year Arista has been recognized as a leader and positioned the furthest for Completeness of Vision in the Leaders Quadrant of the July 2017 Gartner Magic Quadrant for Data Center Networking.
For the first quarter of 2018, the company expects revenue between $450 and $468 million, and non-GAAP gross margin between 63% to 65%
The stock price faltered $54.77, or 17.8%, to $253.19.