Wall Street expects a year-over-year increase in earnings on higher revenues when Arista Networks (ANET) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.\n\nThe stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower.\n\nWhile the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.\n\nThis cloud networking company is expected to post quarterly earnings of $0.65 per share in its upcoming report, which represents a year-over-year change of +25%.\n\nRevenues are expected to be $2.11 billion, up 25% from the year-ago quarter.\n\nThe consensus EPS estimate for the quarter has been revised 0.25% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.\n\nInvestors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.\n\nPrice, Consensus and EPS Surprise Chart for ANET\n\nEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).\n\nThe Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.\n\nThus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.\n\nA positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.\n\nPlease note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).\n\nFor Arista Networks, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.96%.\n\nOn the other hand, the stock currently carries a Zacks Rank of #1.\n\nSo, this combination indicates that Arista Networks will most likely beat the consensus EPS estimate.\n\nAnalysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.\n\nFor the last reported quarter, it was expected that Arista Networks would post earnings of $0.59 per share when it actually produced earnings of $0.65, delivering a surprise of +10.17%.\n\nOver the last four quarters, the company has beaten consensus EPS estimates four times.\n\nBottom Line\n\nAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.\n\nThat said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.\n\nArista Networks appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.\n\nAnother stock from the Zacks Internet - Software industry, Procore Technologies (PCOR), is soon expected to post earnings of $0.24 per share for the quarter ended June 2025. This estimate indicates a year-over-year change of -38.5%. Revenues for the quarter are expected to be $311.47 million, up 9.5% from the year-ago quarter.\n\nOver the last 30 days, the consensus EPS estimate for Procore Technologies has remained unchanged. Nevertheless, the company now has an Earnings ESP of -1.18%, reflecting a lower Most Accurate Estimate.\n\nWhen combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Procore Technologies will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.\n\nStay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Arista Networks (ANET) Earnings Expected to Grow: Should You Buy?

The article discusses expected earnings growth for Arista Networks (ANET) and Procore Technologies (PCOR), analyzing factors like revenue projections, Zacks Earnings ESP, and consensus estimates to assess potential stock performance. It highlights Arista's positive earnings surprise likelihood and Procore's mixed outlook.