From Nasdaq:

Cloud networking solutions provider Arista Networks reported a forecast for current-quarter adjusted gross margin below market expectations. This overshadowed its quarterly profit beat and led to a 6% drop in shares. Operating expenses widened to $359.3 million in the fourth quarter as sales remained strong due to demand in cloud infrastructure from clients like Microsoft and Meta Platforms. Peer Juniper Networks reported downbeat revenue, affecting Arista’s forecasted adjusted gross margin of 62%. This is lower than analysts’ expectations, but higher than the 65.4% reported in the fourth quarter. Revenue for the fourth quarter rose 20.8% to $1.54 billion, and the forecast for first-quarter revenue ranges from $1.52 billion to $1.56 billion. On an adjusted basis, the company earned $2.08 per share, compared with estimates of $1.70.



Read more: Arista Networks’ lukewarm Q1 forecast overshadows profit beat