Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Arista Networks Inc (ANET): High-speed Data Center Switching & Broad-based Market Share Gains Catalyzing Growth – What’s the Impact on their Broader AI Ambitions, Outlook & its 5 Key Catalysts?
Arista Networks delivered robust Q3 FY24 results, with revenue of $1.81B (+20% YoY) surpassing expectations by $54.73M. Non-GAAP EPS of $2.40 exceeded estimates by $0.32, while gross margins of 64.6% reflected disciplined execution and supply chain efficiency, despite pricing pressures from Cloud Titan customers. AI networking and enterprise demand emerged as key growth drivers, supported by software-led revenue streams (17.6% of revenue) and innovations like the Etherlink 7700 (in collaboration with Meta) and the high-performance 7800 AI spine switch. Management reaffirmed its FY25 AI revenue targets ($750M back-end, $750M front-end), underscoring Arista’s leadership in scalable, low-latency Ethernet solutions for AI workloads. Looking ahead, Arista projects FY25 revenue growth of 15%-17% (~$8B), driven by secular tailwinds in AI and enterprise networking. Gross margins are expected to normalize to 60%-62% due to a mix shift toward hyperscale and AI customers. Proactive supply chain investments and deferred revenue tied to customer-specific clauses are expected to support growth ambitions. Competitively, Arista’s EOS platform and CloudVision automation provide differentiation amid increasing competition from NVIDIA and white-box solutions. The key question: Can Arista sustain its leadership in AI networking and data center switching to capture outsized growth while balancing margin pressures and intensifying competition?
