Netgear (NAS: NTGR) reported earnings on Feb. 12. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Netgear met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Netgear tallied revenue of $310.4 million. The seven analysts polled by S&P Capital IQ expected a top line of $307.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.55. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.56 per share. GAAP EPS of $0.41 for Q4 were 32% lower than the prior-year quarter's $0.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.4%, 140 basis points worse than the prior-year quarter. Operating margin was 9.5%, 150 basis points worse than the prior-year quarter. Net margin was 5.2%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $318.4 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $1.37 billion. The average EPS estimate is $2.71.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,259 members out of 2,333 rating the stock outperform, and 74 members rating it underperform. Among 713 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 703 give Netgear a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Netgear is hold, with an average price target of $38.38.
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The article Netgear Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.
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