Cloud networking solutions provider Arista Networks forecast fourth-quarter revenue above estimates on Monday, as it expects easing supply chain restraints to underscore enterprise spending, sending its shares up 5.5 per cent in extended trading.
Arista has benefited from upbeat capital spending as clients shell out on cloud computing services to support their growing AI needs amid a recovering economy.
Easing supply chain concerns have helped the company cater to cloud companies and enterprise clients such as Microsoft Corp
The Santa Clara, California-based company’s revenue forecast for the current quarter was between $1.50 billion and $1.55 billion, above analyst estimates of $1.47 billion, according to LSEG data.
Arista reported third-quarter revenue of $1.51 billion, a 28.3 per cent increase from a year earlier, beating Street expectations of $1.48 billion.
Rival Juniper Networks also beat estimates for third-quarter revenue last week, on the back of upbeat spending from cloud computing clients.
On an adjusted basis, Arista posted quarterly profit of $1.83 per share, against expectations of $1.58.