Earnings season continues to chug along, with the reporting docket being dominated by mega-cap technology this week. The period has primarily been positive thus far, with many stocks enjoying buying pressure post-earnings.
Next week, the cycle looks to continue at a rapid pace, as we’ve got a full list of companies on the reporting docket scheduled to unveil results. A few of the notable names include Arista Networks ANET, Shopify SHOP, and Deere DE.
Expectations for Arista Networks
Arista Networks shares have benefited nicely from the AI frenzy, up nearly 100% just over the last year. The company is an industry leader in data-driven, client-to-cloud networking for large data centers, campus, and routing environments.
The company is expected to post solid growth, with the current $1.70 Zacks Consensus EPS Estimate suggesting an improvement of 20% year-over-year. Analysts have shown a modest level of bullishness, taking the estimate 1.2% higher since November.
Top line revisions primarily paint the same picture, with the $1.5 billion Zacks Consensus Estimate up a modest 0.6% over the same time period and indicating a 20% boost. Due to customer momentum remaining strong in both enterprise and cloud/AI sectors, ANET’s top line has accelerated over the last few quarters.
The company’s quarterly consistency can’t be overlooked, as ANET has consistently exceeded both consensus expectations. In fact, ANET has beat both top and bottom line consensus expectations in each of its last ten releases.
Heading into the release, Arista Networks sports a Zacks Rank #1 (Strong Buy).
Outlook for Shopify
Shopify provides a multi-tenant, cloud-based, multi-channel e-commerce platform for small and medium-sized businesses. Shares have outperformed nicely over the last year, gaining more than 50% and getting boosted by quarterly results.
The outlook for the company’s upcoming release has shifted notably bright, as the $0.31 Zacks Consensus EPS estimate is up nearly 30% since November. Significant growth is expected, with the value reflecting a 340% year-over-year climb.
Revenue expectations haven’t budged much, as the $2.1 billion expected is up a marginal 0.4% over the same period. Similar to ANET, Shopify’s revenue growth has been strong and is expected to climb an additional 20% for the upcoming release.
Shopify is currently a Zacks Rank #1 (Strong Buy).
Assessing Deere’s Position
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under its iconic John Deere brand and signature green and yellow color scheme. Shares have delivered an 8% gain over the last year, primarily range-bound.
The company’s outlook has been lowered by a fair margin since November, with the $5.16 Zacks Consensus EPS Estimate down nearly 11% during the period. The value reflects a pullback of 21% year-over-year.
In addition, the $10.3 billion Zacks Consensus Sales estimate is well lower than the $10.9 billion expected at the beginning of November and reflects a 14% pullback from the year-ago period. The company’s top line growth has primarily remained steady, as we can see below.
The stock is currently a Zacks Rank #3 (Hold).
Bottom Line
Earnings season is always an exciting time for investors, with companies finally unveiling what’s transpired behind the scenes. We’ve gotten through a fair amount of results so far, with many more prints coming next week.