Overview
NETGEAR Q3 revenue rises 0.9% yr/yr, beating analyst expectations
Company achieves record gross margin of 39.1% in Q3
NETGEAR repurchases $20 mln in shares at $24.55 average price
Outlook
Company expects Q4 net revenue between $170 mln and $185 mln
NETGEAR sees Q4 GAAP operating margin between (7.3)% and (4.3)%
Company anticipates Q4 non-GAAP operating margin between (2.0)% and 1.0%
Result Drivers
ENTERPRISE SEGMENT - Strong demand for ProAV solutions drove revenue and margin growth, aided by strategic investments and supply chain management
RECORD GROSS MARGIN - Achieved record non-GAAP gross margin due to operational improvements and strategic transformation efforts
HOME NETWORKING - Favorable product mix and strong performance of WiFi 7 products supported segment results
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $184.56 mln | $172.46 mln (2 Analysts) |
Q3 Net Income | -$4.78 mln | ||
Q3 Gross Margin | 39.10% | ||
Q3 Gross Profit | $72.25 mln | ||
Q3 Operating Income | -$7.07 mln | ||
Q3 Operating Margin | -3.80% | ||
Q3 Pretax Profit | -$4.04 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for NETGEAR Inc is $40.00, about 15.2% above its October 28 closing price of $33.91
Press Release: ID:nBw8q2QrQa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)