Will Netgear's (NTGR) Earnings In Q3 Top Estimates?
Zacks Investment Research | Oct 24, 2016 11:34PM ET
Netgear Inc. (NASDAQ:NTGR) is set to report third-quarter 2016 results on Oct 26. Last quarter, the company posted a positive earnings surprise of 22.00%. The company has posted an average positive earnings surprise of 26.76% over the past four quarters.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Netgear designs technologically advanced, branded networking products that address the specific needs of small businesses and home users. A strong product portfolio, comprising offerings like Arlo smart home security-cameras and Nighthawk routers and gateways, is expected to boost the top line going forward.
We believe that Netgear’s strength in its retail business will primarily drive results. Region wise, North America continues to be strong.
However, the service provider business continues to pose challenges with the company streamlining this segment. In the second quarter, segment revenues plunged as much as 28.3% year over year.
For the third quarter, the company expects revenues of $315 million to $330 million. Non GAAP operating margin is expected to be around 10.5% to 11.5%.
Earnings Whispers
Our proven model does not conclusively show that Netgear is likely to beat earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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