Back to top

Image: Bigstock

ARLO Queues Up to Report Q1 Earnings: What's in the Offing?

Read MoreHide Full Article

Arlo Technologies (ARLO - Free Report) is set to report first-quarter 2021 results on May 5.

The company expects first-quarter 2021 revenues between $70 and $80 million. Adjusted loss is expected between 17 cents and 23 cents per share.

For the quarter, the Zacks Consensus Estimate for revenues currently stands at $77.3 million, suggesting 18.1% growth from the figure reported in the year-ago quarter.

Moreover, the consensus mark for first-quarter loss stayed at 21 cents per share over the past 30 days, indicating an improvement from loss of 34 cents in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 36.4%.

Arlo Technologies, Inc. Price and EPS Surprise

Arlo Technologies, Inc. Price and EPS Surprise

Arlo Technologies, Inc. price-eps-surprise | Arlo Technologies, Inc. Quote

Arlo’s seasonally slow first quarter is expected to have benefited from a growing subscriber base, driven by its new business model and expanding portfolio. This home security and IoT solution provider added a record 79,000 paid accounts in the fourth quarter, reflecting year-over-year growth of 89.1%.

Markedly, in first quarter, Arlo announced the availability of its all-new Essential Indoor Camera that features an easy-to-control, automated privacy shield.

Moreover, higher mix toward services and subscriptions is expected to have benefited margins in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Arlo Technologies has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fair Isaac (FICO - Free Report) has an Earnings ESP of +15.94% and is #2 Ranked.

Waters Corporation (WAT - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #2.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Published in