Why Netgear Shares Plunged

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Netgear (NAS: NTGR) plunged by as much as 18% today before recouping most of those losses after the company reported earnings.

So what: The maker of gear for the Internet put up second-quarter sales of $320.7 million, a little shy of investors' expectations of $323.6 million. The same story panned out down below, posting adjusted earnings per share of $0.64 compared to the consensus of $0.69.


Now what: Guidance was also gloomy, with third-quarter revenue expected to be $310 million to $325 million, the high end of which still falls short of the analyst estimate of $344.2 million. CEO Patrick Lo cited the macroeconomic situation in Europe but said the business is seeing strong growth in Asia-Pacific. Netgear also recently closed two smaller acquisitions, an engineering company in India and privately held AVAAK.

Interested in more info on Netgear? Add it to your watchlist byclicking here.

The article Why Netgear Shares Plunged originally appeared on Fool.com.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Netgear. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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