Arista Networks Inc (NYSE:ANET) stock rose 3.95% (As on February 14, 11:08:51 AM UTC-4, Source: Google Finance) after the company beat expectations as it delivered its fourth-quarter financial results, showing impressive revenue growth and offering a strong forecast for the current quarter. The company reported net income for the quarter of $427.1 million, up from $239.3 million a year earlier. Non-GAAP gross margin of 61.0%, compared to non-GAAP gross margin of 61.2% in the third quarter of 2022 and 64.3% in the fourth quarter of 2021.

ANET in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.41, beating the analysts’ estimates for the adjusted earnings per share of $1.21. The company had reported the adjusted revenue growth of 54.7 percent to $1.28 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $1.2 billion.

For the first quarter of fiscal 2023, it’s targeting revenue of between $1.27 billion and $1.33 billion, way ahead of Wall Street’s forecast of $1.21 billion. For the first quarter of fiscal 2023, the company expects Non-GAAP gross margin to be of approximately 60%; and Non-GAAP operating margin to be of approximately 40%.

Meanwhile, during the quarter, Arista announced a comprehensive network automation solution with the Arista Continuous Integration (CI) Pipeline. Built on Arista’s EOS Network Data Lake (NetDL), the Arista CI Pipeline helps enterprise customers adopt a modern network operating model. This approach delivers an agile, data-driven change management process for the network, enabling faster, more reliable deployment with reduced operational time and expense. Arista announced the expansion of its widely deployed 7050X4 Series, adding new 100G to 400G systems, providing longevity and investment protection for enterprise compute and storage, colocation providers (Colo) and managed services providers (MSPs). Complementing the new 7050X4 Series, Arista also announced an expansion of the 7060X5 Series with the addition of 800G, which doubles the capacity of hyperscale backbones while reducing space and power per gigabit.

Additionally, the company is seen as a rising star in the computer networking industry. It sells premium network equipment such as high-speed switches that speed up communications between racks of computer servers in data centers. The bulk of its switches are sold to hyperscale data center operators such as Google LLC, Meta Platforms Inc. and Microsoft Corp. Arista also sells enterprise campus switches to smaller companies that run their own on-premises data centers, where it competes more directly with Cisco Systems Inc