Most of the big tech heavy hitters have already reported their quarterly results for the first quarter period including the Magnificent Seven outside of Nvidia NVDA.
Whle Nvidia’s earnings release is scheduled later in the month, two cloud leaders are standing out this week ahead of their Q1 reports on Tuesday, May 7.
Arista Networks ANET
Arista Network’s growth as a cloud networking solutions provider has propelled its stock over +100% in the last year with ANET up +18% year to date. More intriguing and astonishing is that Arista Networks has surpassed the Zacks EPS Consensus in every quarter since the company went public in 2014.
Sporting a Zacks Rank #2 (Buy), Arista Networks’ Q1 earnings are projected to soar 21% to $1.74 per share versus EPS of $1.43 in the comparative quarter. Notably, the Zacks Expected Surprise Prediction (ESP) does indicate Arista Networks should once again top earnings expectations with the Most Accurate Estimate having Q1 EPS pegged at $1.81 and 4% above the Zacks Consensus. Plus, Q1 sales are expected to rise 15% to $1.55 billion with it being noteworthy that Arista Networks has surpassed top line expectations for 17 consecutive quarters dating back to February of 2020.
Image Source: Zacks Investment Research
Twilio TWLO
Twilio’s cloud communications platform has experienced stellar growth with the company’s consistency starting to ring bells as well. Surpassing earnings expectations for 20 consecutive quarters, Twilio sports a Zacks Rank #2 (Buy) with Q1 EPS expected to climb 27% to $0.60 compared to $0.47 a share in the comparative quarter.
The Zacks ESP indicates Twilio should reach earnings expectations and Q1 sales are expected to be up 2% to $1.03 billion. Furthermore, Twilio has surpassed sales estimates in every quarter since the company went public in 2016. Over the last year, Twilio’s stock is still up +16% despite dipping -16% in 2024. With that being said, this year’s dip is starting to look like a buying opportunity.
Image Source: Zacks Investment Research
Bottom Line
Investors looking for steady growth in the portfolio may certainly want to consider Arista Networks and Twilio’s stock. For traders, their consistency also makes them ideal stocks to watch ahead of earnings as Arista Networks and Twilio have a long track record of exceeding expectations and could pop if they can continue this streak while offering favorable guidance.
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Arista Networks, Inc. (ANET) : Free Stock Analysis Report
Twilio Inc. (TWLO) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
