Arlo Technologies Inc. (ARLO) stock is surging 13.44% in pre-market trading on Friday, following the release of its better-than-expected first-quarter 2025 financial results. The smart home security company has impressed investors with its earnings performance, significantly outpacing analyst estimates.
Arlo reported adjusted earnings per share (EPS) of $0.15 for the quarter ended March 31, substantially beating the analysts' consensus estimate of $0.12. This result also shows marked improvement from the $0.09 per share reported in the same quarter last year. While revenue slightly declined by 4.1% year-over-year to $119.066 million, it still managed to surpass the expected $118.4 million.
Despite reporting a quarterly loss of $835,000 on a GAAP basis, the market appears to be focusing on Arlo's ability to exceed expectations and improve its bottom line. Wall Street maintains a positive outlook on Arlo Technologies, with a consensus "buy" rating and a median 12-month price target of $19.50. The company's consistent track record of beating or meeting earnings estimates over the past four quarters seems to be bolstering investor confidence, contributing to the significant pre-market stock price increase.
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