Arista Networks defended at Needham following earnings (310.85)
Needham notes Arista reported another solid quarter of strong growth against the last of the tough 50% Revenue growth comparisons. They also sustained their rich Margins at 64.5% GMs and 37.5% Operating Margins. But that's where the good news ends. Arista offered a soft guide for the June quarter citing a halt in purchases at one large Web 2.0 Titan and slow demand at two others. The Revenue guidance of $600-$610 is below Street estimates of $639 million and represents only a 16%-17% growth rate at the mid-point, well below the nromal mid-20's growth. Arista stated business slowed sharply in late March and persisted through April leading to the lowered outlook. Arista stated they didnt know how long it would last as they didn't have enough data. They think its likely a temporary lull. With ANET indicating down 15% to $260, they are a buyer on this weakness.
ANET -16% premarket.