Revenue totaled $308.8 million, trailing the Bloomberg analyst consensus of $314.8 million. Adjusted earnings registered 66 cents a share, lagging analysts’ estimates of 71 cents.
Netgear traded at $31.70, down 14% in premarket trading. It has fallen 4% in the six months through Wednesday.
Analysts at Cowen lowered their price target to $40 from $45, but kept the market perform rating.
Weakening revenue growth is depressing margins and profit, Cowen analysts wrote. The earnings results “raise questions as to strength of the WiFi 6 upgrade cycle” and show that supply-chain issues are still a problem, they said.
Raymond James cut its price target to $42 from $48, maintaining an outperform rating.
“This is a pretty weak report all around (supply chain constraints along w/signs of softening end market demand) and represents one of the biggest black eyes for tech so far this season,” Raymond James analysts wrote.
But they’re still bullish on the company, due to its valuation and the strength of its balance sheet.