Street earning estimates have to go up as the high estimate was at $7.20 and a real outlier, and that was based on Q4 earnings being estimated at $1.42 per share, not $1.71 a share.
Based upon the Street estimate of $1.42 a share, using the same methodology as I used to derive $7.20 a share, you would only get $6.25 a share in earnings. A substantial difference.
Assuming Arista has roughly the same operating margin of 36%, I took a stab at what earnings would be based on the following revenue growth rates for the next four quarters - 37% (mid-point of guidance) and 25% for the next three quarters. This should be fairly conservative other than assuming continued high margins though I don’t see a reason to assume otherwise. It does ignore SBC dilution which was a bit over 7% last year.
I come up with the following EPS figures:
1.67, 1.85, 1.99, 2.14
$7.65 is the total for a forward PE of about 33x.
A.J.