The weekend can't come soon enough for Arista Networks after its stock dropped on the heels of a weak second-quarter forecast.
The cloud-based software provider's stock dropped more than 15% in after-hours trading Thursday night after announcing it had lowered its second-quarter revenue guidance to between $600 million and $610 million, which was below analyst forecasts of $639 million.
Arista's stock, which has seen its value increase 47% this year, opened at $261.90 this morning before increasing to $266.31 by noon.
Arista said it was expecting lower sales in the second quarter due to slow growth by a hyperscale cloud provider. While the firm didn't say which cloud provider was expecting slower growth in the second quarter, analysts pointed to Microsoft, according to a story by MarketWatch.
The company, which primarily competes against Cisco, lowered its expectations for gross margin to 64% and 65% and operating margin to about 36%. In the first quarter, Arista reported net income of $187.7 million, or $2.31 a share compared to $134.1 million, or $1.66 a share, in a year ago.
Arista's revenue was $595 million, which was flat compared to the fourth quarter last year and an increase of 26% from same quarter a year. Arista's grows margin was 64% compared to 64% a year ago.