William Blair analyst Jason Ader expects a "positive" earnings report from Arista Networks next week when it reports on February 14 driven by "continued robust cloud spending and growing traction in enterprise." Over the past four quarters, the average revenue beat versus the guidance midpoint has been $13.5M, and we have no reason to believe that Arista will deviate much from this level of upside in the current quarter, Ader tells investors in a pre-earnings research note. Further, he believes that after "sky-high" expectations entering 2018, the setup into 2019 "feels much better with Arista trading at a more reasonable valuation and the opportunity for material upside above the current 2019 consensus revenue estimate of 23%." Arista remains the analyst's top pick for 2019.

Bullish option flow detected in Arista Networks with 2,900 calls trading, 1.7x expected, and implied vol increasing almost 2 points to 56.57%. Nov-24 270 calls and 4/26 weekly 275 calls are the most active options, with total volume in those strikes near 770 contracts. The Put/Call Ratio is 0.64. Earnings are expected on May 7th.