Arista Networks Inc (NYSE:ANET) stock fell 4.18% (As on February 13, 11:27:19 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the fourth quarter of FY 23. Non-GAAP gross margin of 65.4%, compared to non-GAAP gross margin of 63.1% in the third quarter of 2023 and 61.0% in the fourth quarter of 2022. Non-GAAP net income of $664.3 million compared to non-GAAP net income of $445.1 million, in the fourth quarter of 2022.

ANET in the fourth quarter of FY 23 has reported the adjusted earnings per share of $2.08, beating the analysts’ estimates for the adjusted earnings per share of $1.71, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 20.8 percent to $1.54 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $1.53 billion. Arista also announced its full-year results for fiscal 2023, delivering total revenue of $5.86 billion, up 34% from the prior year. All told, the company’s profit hit $2.19 billion, up from $1.45 billion the year before. Meanwhile, Holger Mueller of Constellation Research Inc. agreed that Arista delivered a great full year, but said there will be concerns over the slowdown in revenue growth, which only just inched up in the previous quarter from a year earlier.

For the first quarter ending in March, Arista Networks expects revenue to be in the range of $1.52 billion to $1.56 billion, the midpoint of which is ahead of the Street’s call for $1.53 billion in sales, Non-GAAP gross margin to be of approximately 62%, just shy of the Street’s call for a 63% gross margin; and Non-GAAP operating margin of approximately 42%.

On the other hand, Chantelle Breithaupt has been announced as the incoming CFO, set to take her position in February 2024. She expressed her enthusiasm for contributing to the leadership team and the continued delivery of innovative networking solutions to meet the demanding needs of enterprise, cloud, and AI customers.

Additionally, the company highlighted several achievements over the year, including the introduction of its Arista 7130 Series for 25G ultra-low latency networking, an expanded zero trust networking architecture, and surpassing 75 million cloud network ports shipped cumulatively. Additionally, Arista was recognized as a leader in network analysis and visibility by The Forrester Wave and introduced new AI-driven network identity services.