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Arlo Technologies Inc. (NYSE: NYSE:ARLO), a leader in internet-connected camera brands, has seen its stock price touch a 52-week low, dipping to $9.9, marking a significant drop from its 52-week high of $17.64. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts setting price targets between $15 and $24. This latest price movement reflects a challenging period for the company, which has experienced a significant downturn over the past year. While the stock has declined 20.45% over the past year, InvestingPro data shows the company maintaining 4% revenue growth and holding more cash than debt on its balance sheet. InvestingPro has identified 8 additional key investment factors for Arlo Technologies, available in their comprehensive Pro Research Report. Investors are closely monitoring Arlo’s performance and strategic initiatives as the company navigates through a competitive landscape and evolving consumer demands in the smart home technology sector. With a market capitalization of $1.01 billion and analysts predicting profitability this year, the company shows potential despite current market challenges.
In other recent news, Arlo Technologies has reported its fourth quarter and full-year 2024 financial results, revealing a slight miss on earnings per share (EPS) with an actual EPS of $0.10 compared to the forecasted $0.11. The company, however, demonstrated a robust performance with a total annual revenue of $511 million, marking a 4% increase year-over-year. Service revenue, a significant component of Arlo’s earnings, grew by 21% year-over-year, contributing to an annual recurring revenue (ARR) of $257 million. The company projects a positive outlook for 2025, with anticipated service revenue exceeding $300 million, representing a 25% year-over-year growth. Analysts from Lake Street Capital noted that Arlo’s guidance for 2025 was well ahead of consensus expectations, especially in service revenue growth. Arlo Technologies also plans to launch its largest device lineup in company history during the 2025 holiday season, which is expected to support further growth. Additionally, the company has formed strategic partnerships with firms like RapidSOS and Origin Wireless, aiming to enhance its market position and expand its subscriber base.
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