Shareholders might have noticed that Arista Networks Inc (NYSE:ANET) filed its annual result this time last week. The early response was not positive, with shares down 5.8% to US$103 in the past week. Arista Networks reported US$7.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.23 beat expectations, being 5.3% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Arista Networks

Taking into account the latest results, the consensus forecast from Arista Networks' 27 analysts is for revenues of US$8.36b in 2025. This reflects a notable 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 3.7% to US$2.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$8.26b and earnings per share (EPS) of US$2.34 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$118, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Arista Networks analyst has a price target of US$145 per share, while the most pessimistic values it at US$76.55. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Arista Networks' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% annually. So it's pretty clear that, while Arista Networks' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$118, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Arista Networks going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Arista Networks that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.