Arista Rockets on Q3 Numbers

Arista Networks Inc (NYSE:ANET) reported better-than-expected results for its third quarter and issued strong sales guidance for the fourth quarter.

Arista, an industry leader in cognitive cloud networking for large datacenter and campus environments, today announced financial results for its third quarter ended September 30, 2020.

Third-quarter revenues came in at $605.4 million, an increase of 12.0% compared to the second quarter of 2020, and a decrease of 7.5% from the third quarter of 2019.

GAAP gross margin was 63.6%, compared to GAAP gross margin of 63.7% in the second quarter of 2020 and 63.8% in the third quarter of 2019.

Non-GAAP gross margin of 64.6%, compared to non-GAAP gross margin of 64.7% in the second quarter of 2020 and 64.4% in the third quarter of 2019.

GAAP net income of $168.4 million, or $2.12 per diluted share, compared to GAAP net income of $208.9 million, or $2.59 per diluted share in the third quarter of 2019.

Non-GAAP net income of $192.0 million, or $2.42 per diluted share, compared to non-GAAP net income of $217.1 million, or $2.69 per diluted share in the third quarter of 2019.

According to CEO Jayshree Ullial, "Our customers are validating our traction as we migrate from legacy to cognitive client to cloud deployments with a cumulative of 40 million cloud networking ports shipped by Q3 2020. Despite some COVID-19 turbulence, we believe Arista will only emerge stronger."

ANET shares shot higher $37.26, or 17.2%, to $253.38.