Arista Networks stock heads for best day in three years after earnings

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Shares of Arista Networks Inc. are up 15.9% in Tuesday morning trading and on track for their largest single-day percentage gain since Aug. 4, 2017, when the stock rallied 19.4%. Arista’s Tuesday stock surge comes after the networking company delivered sizable earnings and revenue beats the prior afternoon, while also offering a rosy outlook. “The upbeat tone of the Arista conference call emanated from improved visibility” as “Arista is seeing increased clarity in rebounding cloud demand,” Needham analyst Alex Henderson wrote. He noted that Arista’s outlook calls for a return to revenue growth, of about 13% to 14%, for 2021, though Henderson doesn’t “foresee reacceleration of growth translating to a similar acceleration in EPS.” He has a hold rating on the stock, which has gained 23% so far this year as the S&P 500 has risen 4.7%.
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