Netgear: Q3 EPS Misses; Q4 Forecast Short; Sets Buyback
Netgear (NTGR) shares, which sold off in the regular session, are down again after hours following a disappointing Q3 earnings report and weak Q4 guidance.
For Q3, NTGR posted revenue of $179.4 million, beating the consensus at $176.9 million. But non-GAAP profits of 19 cents a share were well short of the Street at 26 cents.
Also, the company sees Q4 revenue of $155 million to $165 million, below the Street consensus of $186.7 million. Netgear sees non-GAAP operating margin in the quarter of 9.5-10.5 percent.
In a statement, CEO Patrick Lo said the that the company suffered “weakness in demand for our consumer products across both retail and service provider channels in all geographies.” Lo added that the company expects subdued spending conditions to persist over the next few quarters. The company also was hurt by the strengthening dollar, reporting a currency loss in the quarter of $4.7 million.
