In May 2025, Arista Networks' Board of Directors approved a plan to extend its share repurchase program, allowing for up to $1.5 billion in additional stock buybacks. The execution of these buybacks will be influenced by various factors, including market dynamics, business conditions, and the company's capital needs. Additionally, the decision will consider stock valuation, potential acquisition prospects, and other relevant elements.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Arista Networks Inc (ANET, Financial) is $107.21 with a high estimate of $145.00 and a low estimate of $76.00. The average target implies an upside of 18.11% from the current price of $90.77. More detailed estimate data can be found on the Arista Networks Inc (ANET) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Arista Networks Inc's (ANET, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Arista Networks Inc (ANET, Financial) in one year is $86.01, suggesting a downside of 5.24% from the current price of $90.77. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Arista Networks Inc (ANET) Summary page.
ANET Key Business Developments
Release Date: February 18, 2025
- Q4 2024 Revenue: $1.93 billion, up 25.3% year-over-year.
- Fiscal 2024 Revenue Growth: 19.5%.
- Non-GAAP Operating Margin: 47.5% for fiscal 2024.
- Non-GAAP Gross Margin: 64.2% for Q4 2024.
- Non-GAAP Earnings Per Share (EPS): $0.65 for Q4 2024.
- International Revenue Contribution: 16% for Q4 2024.
- Cloud and AI Titans Revenue Contribution: Approximately 48% for fiscal 2024.
- Enterprise & Financials Revenue Contribution: Approximately 35% for fiscal 2024.
- Providers Revenue Contribution: Approximately 17% for fiscal 2024.
- Operating Income: $907.1 million for Q4 2024.
- Net Income: $830.1 million for Q4 2024.
- Cash, Cash Equivalents, and Marketable Securities: Approximately $8.3 billion at the end of Q4 2024.
- Cash from Operations: Approximately $1 billion for Q4 2024.
- Deferred Revenue Balance: $2.79 billion at the end of Q4 2024.
- Inventory Turns: 1.4 times for Q4 2024.
- Fiscal 2025 Revenue Guidance: Approximately $8.2 billion, reflecting 17% growth.
- Q1 2025 Revenue Guidance: $1.93 billion to $1.97 billion.
- Q1 2025 Gross Margin Guidance: Approximately 63%.
- Q1 2025 Operating Margin Guidance: Approximately 44%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Arista Networks Inc (ANET, Financial) achieved a record revenue of $7 billion in 2024, surpassing initial guidance with nearly 20% growth.
- The company reported a strong non-GAAP operating margin of 47.5% for the year.
- Arista Networks Inc (ANET) continues to gain market share in high-performance switching, achieving over 40% market share in 100, 200, and 400 gig ports.
- The company has successfully expanded its 400 gig customer base to approximately 1,000 customers in 2024.
- Arista Networks Inc (ANET) is optimistic about achieving its AI revenue goal of $1.5 billion in 2025, with significant contributions from AI back-end clusters.
Negative Points
- International revenue contribution decreased to 16% in Q4 2024, down from 17.6% in the previous quarter.
- The gross margin in Q4 2024 was slightly down from the prior year, influenced by a mix of business and China tariffs.
- Meta's revenue contribution was lower in 2024 due to a decrease in their CapEx, impacting Arista Networks Inc (ANET)'s revenue.
- The company faces challenges with the stalled deployment of one of its AI clusters due to delays in GPU availability and funding.
- Arista Networks Inc (ANET) anticipates variability in inventory due to the timing of component receipts on purchase commitments.
