By Stephen Nakrosis
Shares of Arista Networks retreated after the company said that both gross margin and operating margin on a non-GAAP basis may decline in the second quarter.
The stock was down 7.5% to $83.89 in post-market trading Tuesday. Shares, which finished regular session up less than 1% at $90.77, have dropped 33% this year.
Arista's forecast for the current quarter was included in its latest financial results that were released after the bell.
The company reported first quarter non-GAAP gross margin of 64.1% and a non-GAPP operating margin of 47.8%. It guided for those numbers to decline in the second quarter, with non-GAPP gross margin of about 63% and a non-GAPP operating margin of about 46%.
The cloud networking company reported first-quarter net income of $813.8 million, for earnings per share of 64 cents, compared with $637.7 million and earnings of 50 cents a year earlier. That beat the estimate for net income of $757.5 million and earnings of 56 cents analysts expected, according to FactSet.
Arista recorded revenue of $2 billion in the quarter, ahead of the $1.98 billion that was expected according to a survey by FactSet.
For the second quarter, the company expects revenue of $2.1 billion.
Also on Tuesday, Arista said its board approved an additional $1.5 billion share repurchase plan.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
Corrections & Amplifications
This was corrected May 7, 2025 because the original version incorrectly stated the company expects revenue of $2.01 billion, which would miss the $2.02 billion expected by analysts.
(END) Dow Jones Newswires
05-06-25 1924ET
