Diamonds and Dogs
Cloud computing remains strong. Arista Networking (ANET) is jumping 9% to a four month high following better than expected earnings. Revenues rose 27.3% to $595.7 million. The company also raised current quarter expectations seeing momentum across its cloud titan and enterprise businesses. Arista reported a record number of $1 million customers in the fourth quarter along with one giant customer called, Microsoft. Looks like Arista has good friends in the cloud.
Newell Brands (NWL) going in the wrong direction. The consumer goods multinational, owner of brands like Rubbermaid, is down 4% to a four month low following earnings. Earnings beat expectations, but revenues fell 6.0% to $2.34 billion below expectations. The company also lowered current and full year guidance. Newell is calling 2019 a year of significant portfolio and organization transformation blaming a slew of things including retailer bankruptcies, foreign exchange, inflation and tariffs. Other than that, the company is doing great.