ANET - Arista Networks, Inc.

NYSE - NYSE Delayed Price. Currency in USD
190.21
-1.44 (-0.75%)
At close: 4:02PM EST
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Previous Close191.65
Open192.42
Bid190.02 x 800
Ask191.38 x 800
Day's Range189.87 - 193.16
52 Week Range173.31 - 331.27
Volume615,668
Avg. Volume856,869
Market Cap14.532B
Beta (3Y Monthly)1.48
PE Ratio (TTM)20.04
EPS (TTM)9.49
Earnings DateFeb 12, 2020 - Feb 17, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est213.60
  • If You Own Nokia Stock, Prepare for More of the Same Disappointments
    InvestorPlace

    If You Own Nokia Stock, Prepare for More of the Same Disappointments

    I can see why investors would be tempted to buy the dip in Nokia (NYSE:NOK). The sell-off since a disastrous third-quarter report has brought valuation back in line. The 5G tailwind that attracted investors to Nokia stock still exists. Yes, the news in the Q3 release was disappointing -- but a lower price, in theory, could offset some of that disappointment.Source: RistoH / Shutterstock.com That said, the case on paper has a very big problem in practice. Nokia stock simply can't be trusted at this point.The 5G tailwind was supposed to benefit results this year and next -- not in 2021, as is now hoped. Market share is eroding. On paper, NOK stock does look cheap -- but looking at the actual business, it seems increasingly clear that it should be.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 5G and Nokia StockThe Q3 earnings report unquestionably was disappointing. NOK stock fell nearly 24%, its largest loss in 19 years. Interestingly, the quarter itself came in ahead of analyst estimates. But it was guidance that led to the enormous sell-off. * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities Heading into the quarter, Nokia had guided for 2019 adjusted earnings per share of €0.25-€0.29, which was then set to grow sharply to €0.37-€0.42 in 2020. The outlook for both years was slashed after Q3.For 2019, Nokia now sees adjusted EPS of €0.18-€0.24. That's actually not that big a decline from original expectations for this year, particularly given that Nokia already had said after the second quarter that there were risks to meeting 2019 guidance. But in 2020, Nokia now sees adjusted EPS of just €0.20-€0.30. Adjusted operating margins are now expected at 8-11%, against a prior 12-16%.The culprit was the company's networks business and particularly its 5G portfolio. Those products were supposed to drive the growth and margin expansion Nokia projected, but that's no longer the case. Nokia clearly is losing market share to Scandinavian rival Ericsson (NASDAQ:ERIC) as both companies try to take advantage of the political pressure being applied to Chinese rival Huawei.As a result, Nokia is spending behind the business to try and lower prices and better compete with Ericsson, in particular. That rival has opted to lower upfront pricing in hopes of making up the profit through higher-margin service contracts. Nokia apparently has to match that pricing -- but that's not the only issue here. Management and Execution ProblemsI've long been skeptical of the turnaround case for Nokia stock for two core reasons. As I detailed earlier this year, this is a company with a long history of overpromising and underdelivering.Last month's news is just the latest in a long history of disappointments. And in that context, it's hard to trust the new guidance going forward. Why is this time different?Certainly, management isn't inspiring any confidence at this point. CEO Rajeev Suri told Bloomberg in an interview that part of his company's problem was that its acquisition of Alcatel-Lucent created "more work," as the company had to migrate all of the legacy Alcatel-Lucent products to the Nokia nameplate. But that acquisition was completed three years ago, and certainly, Suri was aware of that issue when the company reiterated guidance in August.This simply doesn't seem like a management team on top of its business. It's losing to Ericsson. It was just six months ago that Nokia was talking up the fact that it hadn't lost a single 4G customer in the transition to 5G, and now it's overhauling its go-to-market strategy. As Will Healy noted on this site, the company reportedly is losing Telecom Italia, with that customer going with Huawei and Ericsson.From a broad standpoint, there's another question. If Nokia can't drive growth now, when can it? Huawei has been hampered, if not crippled, by security concerns. There's really no other competitor besides Ericsson. And yet Nokia isn't expecting much in the way of growth, even if guidance is met this time around. Cheap Isn't Enough for Nokia StockTo be sure, NOK stock is cheap. The midpoint of updated 2020 EPS guidance, €0.25, translates to $0.277. That, in turn, suggests just a 12x forward multiple.And so, again, there's an aspect of Nokia stock that is tempting. The dividend has been cut to fund 5G investments, but management expects the payout to return at some point. 5G growth should continue. Huawei's competitive positioning is at long-term risk.But that's not enough -- and it's not as if other networking plays don't have bull cases themselves. Industry leader Cisco Systems (NASDAQ:CSCO) has sold off. Arista Networks (NYSE:ANET) plunged after earnings, and has its own "buy the dip" case. Juniper Networks (NYSE:JNPR) has shown long-awaited signs of life. Investors willing to step in to the sector have options beyond NOK stock.The biggest issue here, however, is company-specific. Yes, Nokia has an opportunity for growth. But it also has a stock price at a six-year low because it hasn't capitalized on past opportunities. It's exceedingly difficult coming out of the Q3 release to believe that this time is different.That's why the NOK stock price fell 24% after earnings. It's why it's kept falling. Investors don't trust Nokia, or Nokia stock. It's difficult to blame them.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities * 7 High-Yield ETFs to Buy Now * 4 Dow Jones Industrial Average Stocks to Sell The post If You Own Nokia Stock, Prepare for More of the Same Disappointments appeared first on InvestorPlace.

  • Why Arista Networks, Inc.’s (NYSE:ANET) Return On Capital Employed Is Impressive
    Simply Wall St.

    Why Arista Networks, Inc.’s (NYSE:ANET) Return On Capital Employed Is Impressive

    Today we'll evaluate Arista Networks, Inc. (NYSE:ANET) to determine whether it could have potential as an investment...

  • ACCESSWIRE

    SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Arista Networks, Inc. - ANET

    NEW YORK, NY / ACCESSWIRE / November 16, 2019 / Pomerantz LLP is investigating claims on behalf of investors of Arista Networks, Inc. ("Arista" or the "Company") (NYSE:ANET). Such investors ...

  • Barrons.com

    Cisco Stock Gets a Thumbs-Up From Analyst Ahead of Earnings Report

    RBC Capital launched coverage of Cisco Systems stock, saying it’s a buy just ahead of the company’s October quarter earnings report.

  • GlobeNewswire

    EQUITY ALERT: Levi & Korsinsky, LLP Reminds Investors of an Investigation Involving Possible Securities Fraud Violations by Certain Officers and Directors of Arista Networks, Inc.

    NEW YORK, Nov. 12, 2019 -- Levi & Korsinsky reminds investors that it has commenced an investigation of Arista Networks, Inc. (“Arista” or “the Company”) (NYSE: ANET).

  • New Stocks on our Focus List
    Yahoo Finance

    New Stocks on our Focus List

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    Day Ahead: Top 3 Things to Watch

    Investing.com -- Here's a preview of the top three things that could rock markets tomorrow.

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    Zacks

    Tech Stocks' Earnings Roster for Nov 13: CSCO, NTAP & SSYS

    Here is a sneak peek into how three technology stocks, namely, Cisco, NetApp and Stratasys, are poised ahead of their upcoming earnings releases on Nov 13.

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    Cisco Reports Earnings on Wednesday. Here’s What to Expect.

    Investors are nervous about the potential for less spending by both cloud-services providers and customers such as telecommunications companies.

  • Walmart, weed and a couple of crucial tech earnings are coming your way
    MarketWatch

    Walmart, weed and a couple of crucial tech earnings are coming your way

    The quarter is about to hit its halfway point, but earnings season is already reaching the final stages.

  • GuruFocus.com

    Panic Grips Arista Networks Stock After Earnings Report

    Bearish sentiment because of temporary weakness indicates buying opportunity on the stock Continue reading...

  • The Zacks Analyst Blog Highlights: Sprint, ADTRAN, Arista Networks, Altice USA and Viavi Solutions
    Zacks

    The Zacks Analyst Blog Highlights: Sprint, ADTRAN, Arista Networks, Altice USA and Viavi Solutions

    The Zacks Analyst Blog Highlights: Sprint, ADTRAN, Arista Networks, Altice USA and Viavi Solutions

  • GlobeNewswire

    EQUITY ALERT: Levi & Korsinsky, LLP Notifies Investors of an Investigation Involving Possible Securities Fraud Violations by Certain Officers and Directors of Arista Networks, Inc.

    NEW YORK, Nov. 07, 2019 -- Levi & Korsinsky reminds investors that it has commenced an investigation of Arista Networks, Inc. (“Arista” or “the Company”) (NYSE: ANET).

  • Cisco (CSCO) Gears Up for Q1 Earnings: What's in the Cards?
    Zacks

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  • Arista Enhances Cloud Networking with CloudEOS
    Business Wire

    Arista Enhances Cloud Networking with CloudEOS

    Delivering enterprise class multi cloud and cloud native networks

  • GlobeNewswire

    SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Arista Networks, Inc. - ANET

    Pomerantz LLP is investigating claims on behalf of investors of Arista Networks, Inc. (“Arista” or the “Company”) (ANET). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. The investigation concerns whether Arista and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

  • ACCESSWIRE

    Bronstein, Gewirtz & Grossman, LLC Announces Investigation of Arista Networks, Inc. (ANET)

    NEW YORK, NY / ACCESSWIRE / November 4, 2019 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Arista Networks, Inc. ("Arista" or the "Company") ...

  • Thomson Reuters StreetEvents

    Edited Transcript of ANET earnings conference call or presentation 31-Oct-19 8:30pm GMT

    Q3 2019 Arista Networks Inc Earnings Call

  • Barrons.com

    Intel’s CFO Talks About the AMD Threat, Chip Profits, and the Future of AI

    Intel CFO George Davis says the company has made more than one bet in AI, “so we’re looking at it from a number of different angle.”

  • Arista Stock Plunges As Guidance Misses On Facebook Order Delay
    Investor's Business Daily

    Arista Stock Plunges As Guidance Misses On Facebook Order Delay

    Arista Networks earnings topped estimates but revenue guidance badly missed Wall Street revenue targets as a key cloud computing customer pulled orders. Arista stock plunged.