Arista Networks shares rise 20% on better-than-expected earnings

President and CEO of Arista Networks Jayshree Ullal

Scott Mlyn | CNBC

Networking company Arista Networks shares jumped 20% in Tuesday trading to reach a 52-week high, after its second quarter earnings report released Monday showed stronger-than-expected revenue and profit growth.

The company reported second quarter revenue of $1.46 billion, beating Refinitiv consensus estimates of $1.38 billion and up nearly 39% from the year-ago quarter. Arista also reported adjusted earnings of $1.58 per share, compared to consensus estimates of $1.44 per share. GAAP net income came in at $492 million, up 64% from $299 million in the year-ago quarter.

The company also offered strong guidance of between $1.45 billion and $1.5 billion for Q3 revenue, ahead of consensus estimates of $1.39 billion according to analysts surveyed by Factset.

Arista shares are up nearly 56% this year.

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