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NETGEAR (NTGR) Stock Tanks on Bleak Preliminary Q1 Sales Data
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NETGEAR, Inc (NTGR - Free Report) reported tepid preliminary first-quarter 2022 results due to a declining U.S. consumer Wi-Fi market and COVID-19 lockdowns in China, exacerbating supply chain troubles.
NETGEAR expects revenues for the first quarter to be in the range of $202-$212 million compared with the earlier guidance of $225-$240 million. Non-GAAP operating margin for the to-be-reported quarter is expected to be between (5.3)% and (4.3)% compared with the prior guidance of 1-2%.
GAAP operating margin is expected to be between (7.7)% and (6.7)% compared with the previous range of (1.5)-(0.5)%.
NETGEAR added that revenues from the Small and Medium Business or SMB segment met expectations, but the latest lockdowns in Shenzhen (March 2022) significantly affected components’ supply to factories. This led to a significant loss of opportunity to boost SMB revenues in the first quarter.
The U.S. consumer Wi-Fi market, which rose nearly 15% (above 2019 level) in 2021, has performed tepidly in the first quarter. In the first quarter, the market ended approximately flat to 2019 levels, added NETGEAR. This led to a decline in the company’s revenues from the Connected Home Products or CHP segment relative to the earlier projections.
Following the announcement, shares of NETGEAR tanked 11.4% in the after-market trading on Apr 18, 2022. In the past year, shares have lost 38.4% compared with the industry’s decline of 1.8%.
NETGEAR will report first-quarter results on Apr 27 after market close. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 10 cents per share on revenues of $234.01 million.
Over the trailing four quarters, the company surpassed estimates on three occasions and met the same once, the average surprise being 35.5%.
Our proven model does not conclusively predict an earnings beat for NETGEAR for the to-be-reported quarter, as it does not have the right combination of the two key ingredients. A 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. However, this is not the case here, as elaborated below.
NETGEAR 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 With Favorable Combination
Here are some stocks lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks:
The Zacks Consensus Estimate for Sirius XM’s to-be-reported quarter’s earnings and revenues is pegged at 8 cents per share and $2.13 billion, respectively. Sirius XM surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 22%. Shares of SIRI have lost 0.8% in the past year.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +4.52% and currently carries a Zacks Rank of 3. Booking Holdings is set to announce quarterly figures on May 4.
The Zacks Consensus Estimate for Booking Holdings’ to-be-reported quarter’s earnings and revenues is pegged at loss of 98 cents per share and $2.51 billion, respectively. Booking Holdings surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 19.1%. Shares of BKNG have lost 6.2% in the past year.
Apple (AAPL - Free Report) has an Earnings ESP of +1.78% and currently carries a Zacks Rank #2. Apple is slated to release quarterly numbers on Apr 28.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.43 per share and $94.43 billion, respectively. AAPL surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 20.3%. Shares of AAPL have gained 24% in the past year.
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NETGEAR (NTGR) Stock Tanks on Bleak Preliminary Q1 Sales Data
NETGEAR, Inc (NTGR - Free Report) reported tepid preliminary first-quarter 2022 results due to a declining U.S. consumer Wi-Fi market and COVID-19 lockdowns in China, exacerbating supply chain troubles.
NETGEAR expects revenues for the first quarter to be in the range of $202-$212 million compared with the earlier guidance of $225-$240 million. Non-GAAP operating margin for the to-be-reported quarter is expected to be between (5.3)% and (4.3)% compared with the prior guidance of 1-2%.
GAAP operating margin is expected to be between (7.7)% and (6.7)% compared with the previous range of (1.5)-(0.5)%.
NETGEAR added that revenues from the Small and Medium Business or SMB segment met expectations, but the latest lockdowns in Shenzhen (March 2022) significantly affected components’ supply to factories. This led to a significant loss of opportunity to boost SMB revenues in the first quarter.
The U.S. consumer Wi-Fi market, which rose nearly 15% (above 2019 level) in 2021, has performed tepidly in the first quarter. In the first quarter, the market ended approximately flat to 2019 levels, added NETGEAR. This led to a decline in the company’s revenues from the Connected Home Products or CHP segment relative to the earlier projections.
Following the announcement, shares of NETGEAR tanked 11.4% in the after-market trading on Apr 18, 2022. In the past year, shares have lost 38.4% compared with the industry’s decline of 1.8%.
NETGEAR, Inc. Price and Consensus
NETGEAR, Inc. price-consensus-chart | NETGEAR, Inc. Quote
Earnings Whispers
NETGEAR will report first-quarter results on Apr 27 after market close. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 10 cents per share on revenues of $234.01 million.
Over the trailing four quarters, the company surpassed estimates on three occasions and met the same once, the average surprise being 35.5%.
Our proven model does not conclusively predict an earnings beat for NETGEAR for the to-be-reported quarter, as it does not have the right combination of the two key ingredients. A 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. However, this is not the case here, as elaborated below.
NETGEAR 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 With Favorable Combination
Here are some stocks lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks:
Sirius XM (SIRI - Free Report) has an Earnings ESP of +3.23% and sports a Zacks Rank #2 at present. Sirius XM is scheduled to report earnings results on Apr 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sirius XM’s to-be-reported quarter’s earnings and revenues is pegged at 8 cents per share and $2.13 billion, respectively. Sirius XM surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 22%. Shares of SIRI have lost 0.8% in the past year.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +4.52% and currently carries a Zacks Rank of 3. Booking Holdings is set to announce quarterly figures on May 4.
The Zacks Consensus Estimate for Booking Holdings’ to-be-reported quarter’s earnings and revenues is pegged at loss of 98 cents per share and $2.51 billion, respectively. Booking Holdings surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 19.1%. Shares of BKNG have lost 6.2% in the past year.
Apple (AAPL - Free Report) has an Earnings ESP of +1.78% and currently carries a Zacks Rank #2. Apple is slated to release quarterly numbers on Apr 28.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.43 per share and $94.43 billion, respectively. AAPL surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 20.3%. Shares of AAPL have gained 24% in the past year.