Business Corpus: Arista Revenue Outlook In Line, Stock Falls; Is Cisco Gaining Traction?Arista Networks late Thursday reported first-quarter revenue and earnings that topped views but forecast in-line June quarter sales, sending shares down in late trades. The post Arista Revenue Outlook In Line, Stock Falls; Is Cisco Gaining Traction? appeared first on Investor's Business Daily.

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Arista Networks (ANET) late Thursday reported first-quarter revenue and earnings that topped views but forecast in-line June quarter sales, sending shares down in late trades.

Arista said adjusted earnings were $1.66 a share, up 78% from a year ago. Revenue jumped 41% to $472.5 million for the period ended March 31, topping analyst views. A year earlier, it earned 93 cents a share on sales of $335.5 million. Analysts expected the company to report earnings of $1.51 a share on sales of $463.4 million.

For the June quarter, Arista said it expects revenue of $507 million at its midpoint of guidance, just above estimates of $506.2 million.

"We continue to experience meaningful relevance and expansion as customers shift to cloud networking," Chief Executive Jayshree Ullal said in a news release.

Shares fell 8.5% to 245 in after-hours trading on the stock market today.

Growth Stock

Arista is ranked No. 5 in the IBD 50 roster of growth stocks. It makes computer networking gear for cloud-computing data centers.

A fierce rival of Cisco Systems (CSCO), Arista sells switches that speed up communications in racks of computer servers packed into data centers. Arista's primary customers are tech and internet companies

Shares dived after it reported earnings for the December quarter of 2017 that handily beat views. But revenue only edged estimates and its sales outlook for the March quarter of 2018 disappointed.

Some analysts say that Cisco has become more competitive in the high performance part of the switching market. Cisco and Arista have been in a long-running legal battle over patents.

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The post Arista Revenue Outlook In Line, Stock Falls; Is Cisco Gaining Traction? appeared first on Investor's Business Daily.