We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NETGEAR (NTGR) to Report Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
NETGEAR Inc. (NTGR - Free Report) is set to report fourth-quarter 2017 results on Feb 6. Notably, the company beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average positive surprise of 12.23%.
NETGEAR’s third-quarter earnings of 81 cents per share beat the Zacks Consensus Estimate by 13 cents. The figure increased 35% sequentially and 6.6% on a year-over-year basis.
Revenues of $355.5 million also beat the Zacks Consensus Estimate of $349 million. The figure increased 7.5% sequentially and 5% year over year.
For fourth-quarter 2017, NETGEAR projects revenues between $375 million and $390 million. Non-GAAP operating margin is expected in the range of 7-8%.
Let’s see how things are shaping up for this announcement.
Key Factors
NETGEAR’s expanding portfolio is a key catalyst. The company is likely to benefit from increasing customer base as well as favorable product mix.
We expect NETGEAR’s strong product portfolio comprising offerings like Nighthawk WiFi routers, Arlo home security products and Orbi WiFI systems, to boost top-line growth. Moreover, the company is also doing well in the IP camera market.
During the quarter, NETGEAR launched Nighthawk X6S and Orbi Pro solutions with the patented FastLane3 technology. The company also launched the Arlo Pro 2, featuring higher-quality video with 1080p HD optional 24/7 continuous video recording and activities on monitoring. The device also supports Amazon’s Alexa.
Additionally, NETGEAR has expanded its family of switching products that operates at 100Mbps, 1Gbps, 2.5Gbps, 5Gbps or 10Gbps. It has introduced 24-Port Gigabit PoE+ Smart Managed Pro Switch, 48-port Gigabit Smart Managed Plus Switch (GS750E) and 12-Port 10-Gigabit Ethernet Smart Managed Pro Switch (XS712Tv2).
However, the service provider business continues to pose challenges with the company streamlining the segment. The contracting gigabit switch market is a headwind.
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. .
NETGEAR sports a Zacks Rank #1 but its Earnings ESP is 0.00%. Therefore, our proven model does not conclusively show that the company is likely to deliver a positive surprise this quarter.
Stocks That Warrant a Look
Here are few stocks that you may want to consider as our model shows that they have the right combination of elements to deliver an earnings beat in their upcoming release:
Activision Blizzard has an Earnings ESP of +4.99% and a Zacks Rank #3.
NCR Corporation has an Earnings ESP of +2.62% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
NETGEAR (NTGR) to Report Q4 Earnings: What's in the Cards?
NETGEAR Inc. (NTGR - Free Report) is set to report fourth-quarter 2017 results on Feb 6. Notably, the company beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average positive surprise of 12.23%.
NETGEAR’s third-quarter earnings of 81 cents per share beat the Zacks Consensus Estimate by 13 cents. The figure increased 35% sequentially and 6.6% on a year-over-year basis.
Revenues of $355.5 million also beat the Zacks Consensus Estimate of $349 million. The figure increased 7.5% sequentially and 5% year over year.
For fourth-quarter 2017, NETGEAR projects revenues between $375 million and $390 million. Non-GAAP operating margin is expected in the range of 7-8%.
Let’s see how things are shaping up for this announcement.
Key Factors
NETGEAR’s expanding portfolio is a key catalyst. The company is likely to benefit from increasing customer base as well as favorable product mix.
We expect NETGEAR’s strong product portfolio comprising offerings like Nighthawk WiFi routers, Arlo home security products and Orbi WiFI systems, to boost top-line growth. Moreover, the company is also doing well in the IP camera market.
During the quarter, NETGEAR launched Nighthawk X6S and Orbi Pro solutions with the patented FastLane3 technology. The company also launched the Arlo Pro 2, featuring higher-quality video with 1080p HD optional 24/7 continuous video recording and activities on monitoring. The device also supports Amazon’s Alexa.
Additionally, NETGEAR has expanded its family of switching products that operates at 100Mbps, 1Gbps, 2.5Gbps, 5Gbps or 10Gbps. It has introduced 24-Port Gigabit PoE+ Smart Managed Pro Switch, 48-port Gigabit Smart Managed Plus Switch (GS750E) and 12-Port 10-Gigabit Ethernet Smart Managed Pro Switch (XS712Tv2).
However, the service provider business continues to pose challenges with the company streamlining the segment. The contracting gigabit switch market is a headwind.
NETGEAR, Inc. Price and EPS Surprise
NETGEAR, Inc. Price and EPS Surprise | NETGEAR, Inc. Quote
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. .
NETGEAR sports a Zacks Rank #1 but its Earnings ESP is 0.00%. Therefore, our proven model does not conclusively show that the company is likely to deliver a positive surprise this quarter.
Stocks That Warrant a Look
Here are few stocks that you may want to consider as our model shows that they have the right combination of elements to deliver an earnings beat in their upcoming release:
NVIDIA Corporation (NVDA - Free Report) with an Earnings ESP of +6.87% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Activision Blizzard has an Earnings ESP of +4.99% and a Zacks Rank #3.
NCR Corporation has an Earnings ESP of +2.62% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>