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SAN JOSE, Calif. - NETGEAR , Inc. (NASDAQ:NTGR) reported better-than-expected first quarter results, sending shares soaring 13.6% in after-hours trading on Wednesday.
The networking equipment maker posted adjusted earnings of $0.02 per share, significantly beating analyst estimates of a $0.37 per share loss. Revenue came in at $162.1 million, surpassing the consensus forecast of $152.24 million.
The company’s Q1 revenue declined 1.5% YoY but exceeded the high end of its guidance range. NETGEAR saw strong demand for its ProAV managed switches and improved supply chain execution. The NETGEAR for Business segment revenue grew 15.4% YoY to $79.2 million.
"We are very pleased with the progress of our ongoing transformation and the execution of our global teams," said CJ Prober, Chief Executive Officer. "All of our business units delivered at or above our expectations with year-over-year contribution margin improvements for each of more than 400 basis points."
NETGEAR’s gross margin expanded significantly, with non-GAAP gross margin rising 550 basis points YoY to 35.0%. The company ended the quarter with $391.9 million in cash and short-term investments.
For Q2, NETGEAR expects revenue between $155 million and $170 million. The company anticipates non-GAAP operating margin to be in the range of -6.5% to -3.5%.
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