Following the success of Orbi WiFi 6 Tri-band Mesh Systems, NETGEAR, Inc. (NTGR - Free Report) announced the launch of Orbi Pro WiFi 6 (SXK80) Tri-band Mesh System. The latest entrant to the Orbi suite of networking solutions has been designed to provide consistent Wi-Fi coverage across home offices and small-sized organizations. The product launch is likely to make the Orbi technology more accessible to a broader spectrum of audience by catering to the accretive bandwidth requirements of almost every household.
With more than 20 years of industry experience, NETGEAR is primarily known for providing reliable and innovative networking solutions through its Orbi portfolio, among other platforms. Markedly, the Orbi portfolio of Wi-Fi systems is widely accepted across global markets for providing seamless Internet connectivity. The Orbi Pro solution enables devices to cover a wide range of business environments with hassle-free configurations. Known for its superior performance compared to Wi-Fi 5 Orbi Pro, the newest solution provides multi-gigabit network speed of up to 2.5Gbps with improved power efficiency and security.
The Orbi Pro Wi-Fi 6 (SXK80) Tri-band Mesh System is a multi-node mesh system, which includes one router and one satellite, and offers stable WiFi connection spanning an area of nearly 18,000 square feet. This feature enhances its capacity up to 4X the client device connection while enabling businesses to operate with reduced congestion. The patented tri-band mesh technology, powered by a dedicated backhaul, also enables mobile users to manage their networks with the help of NETGEAR Insight app. The application maximizes operational efficiencies and creates dedicated Wi-Fi channels for administrative purposes. Currently, these are available in the United States.
Holding nearly 49% market share in U.S. retail Wi-Fi products, the San Jose, CA-based networking behemoth intends to remain quite proactive with its broad line-up of Orbi, cable modems and gateways coupled with its SMB switching portfolio, particularly the PoE and ProAV switches. It continues to capitalize on technology inflections, create new categories and generate recurring revenues to sustain its leading market position and drive growth. The company expects to significantly benefit from new product initiations on the back of Wi-Fi 6 standards alongside the world’s first millimeter wave 5G device with AT&T (T - Free Report) .
NETGEAR’s top line is growing due to the rapid surge in Internet-connected devices, thereby boosting the need for robust networking solutions. An increased market demand for Smart Home and connected products such as Smart TVs, game consoles, HD streaming players and security cameras, among others, continues to drive innovation in the networking space. Notably, it generates a significant portion of its revenues from the Connected Home segment that offers high-performance, dependable and easy-to-use LTE and Wi-Fi Internet networking solutions for consumers. The Orbi portfolio is likely to strengthen its market position and augment revenues in the near term.
Shares of NETGEAR have gained 16.4% against the industry’s decline of 14.8% in the past three months. The company topped earnings estimates in each of the last four quarters. The company delivered a trailing four-quarter positive earnings surprise of 43.8%, on average.
NETGEAR currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industry are Digi International Inc. (DGII - Free Report) and Extreme Networks, Inc. (EXTR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Digi International delivered a trailing four-quarter positive earnings surprise of 564.3%, on average.
Extreme Networks delivered a trailing four-quarter positive earnings surprise of 223.2%, on average.
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