Netgear Soars on Second-Quarter Earnings Beat

The communication equipment company beats Wall Street's second-quarter earnings and revenue expectations.
By Rob Lenihan ,

Netgear (NTGR) - Get Report shares surged 16% to $32.91 Thursday after the communication equipment company beat Wall Street's second-quarter earnings and revenue expectations.

The San Jose-based company posted second-quarter net income of $839,000, or 3 cents a share, up from a loss of $5.2 million, or 16 cents a share, a year ago. Adjusted earnings came to 28 cents a share. Revenue totaled $230.9 million, up from $255.3 million a year ago.

Analysts had expected Netgear to report earnings of 25 cents a share on $224.4 million in revenue. Looking ahead, Netgear said it expects third-quarter revenue between $265 million and $280 million.

"During the second quarter of 2019, we saw improvement in the U.S. retail WiFi market driven by the continued roll out of our WiFi 6 Nighthawk routers and various channel marketing activities," Patrick Lo, chairman and CEO, said in statement. "The improved market demand allowed us to finish the quarter with healthy channel inventory levels. Our financial results for the quarter came in slightly above the high end of our guidance range for revenue, and in-line with the range for non-GAAP operating margin." 

Lo also said Netgear reached 11.2 million registered users in in the second quarter and the number of registered app users reached 2.8 million.

"We recently launched Netgear Armor Cyber Threat Protection to our Orbi WiFi systems install base worldwide, and have been encouraged by the initial traction with trial users," Lo said.

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