(Reuters) – 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% 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% 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.
(Reporting by Akshita Toshniwal in Bengaluru; Editing by Krishna Chandra Eluri)
