Why Cisco Systems (CSCO) Fell Short of Expectations

Arista Networks (ANET) Dips More Than Broader Market Today: What's Behind the Slide?

Arista Networks (ANET) has taken a hit in the market today, with its stock price dipping more than the broader market. As of 2:30 PM ET, ANET shares have fallen 4.3% to $133.15, while the S&P 500 has declined 1.2% to 4,413.19.

The decline comes despite a strong quarterly earnings report from the company, which saw its revenue rise 14.1% year-over-year to $1.24 billion. This growth was driven by a 15.4% increase in switching revenue, which accounted for 73.2% of total revenue.

However, the company's adjusted earnings per share (EPS) of $2.34 missed estimates by $0.02, which may have contributed to the decline. Additionally, ANET's guidance for the current quarter was slightly below expectations, with the company expecting revenue to be in the range of $1.25 billion to $1.30 billion, compared to estimates of $1.31 billion.

Another potential factor behind the decline may be the company's guidance on the impact of the ongoing semiconductor shortage on its business. ANET warned that the shortage could continue to affect its supply chain and lead times for certain products, which may have raised concerns among investors.

Despite the decline, ANET remains a strong performer in the technology sector, with its stock up 34.1% over the past year. The company's focus on cloud networking and its strong relationships with major cloud providers have helped drive its growth, and many investors remain optimistic about its long-term prospects.