in

Trending Stock Update: NETGEAR, Inc. (NASDAQ: NTGR)

On Wednesday NETGEAR, Inc. (NASDAQ: NTGR) shares price traded between $66.00 and $67.30 during the last trading session downbeat with -0.30 percent at $-0.20. The stock is trading upside 48.67 percent from its one year high of $78.30 and moved 16.87 percent upward from $44.10, which is one year low of the stock. The short ratio in the stock is 8.87 and the short float is around of 10.91 percent.

NETGEAR, Inc. (NTGR) recently stated financial results for the second quarter ended July 1, 2018.

Net revenue for the second quarter ended July 1, 2018 was $366.8M, as contrast to $330.7M in the second quarter ended July 2, 2017, and $345.0M in the first quarter ended April 1, 2018. Net loss, computed in accordance with GAAP, for the second quarter of 2018 was $5.2M, or $0.17 net loss per diluted share. This contrast to GAAP net income of $14.6M, or $0.44 net income per diluted share, in the second quarter of 2017, and GAAP net income of $5.6M, or $0.17 net income per diluted share, in the first quarter of 2018. Non-GAAP net income was $0.57 per diluted share in the second quarter of 2018, as contrast to non-GAAP net income of $0.60 per diluted share in the second quarter of 2017 and $0.62 per diluted share in the first quarter of 2018.

Operating margin, computed in accordance with GAAP, for the second quarter of 2018 was (0.8) percent, as contrast to 5.8 percent in the year ago comparable quarter, and 2.5 percent in the first quarter of 2018. Non-GAAP operating margin was 5.9 percent in the second quarter of 2018, as contrast to 8.5 percent in the second quarter of 2017 and 7.5 percent in the first quarter of 2018.

The accompanying schedules provide a reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non-GAAP basis.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, “We had an excellent second quarter in 2018, driven by Arlo, Orbi, the Nighthawk Pro Gaming Router, cable modems and gateways, and our SMB switches. As a result our net revenue for the quarter came in well above the revenue guidance range provided. We are also excited to see year-over-year revenue growth in all three sections for Q2, which drove 10.9 percent top line growth for NETGEAR overall.”

Mr. Lo continued, “We continue to focus on the successful separation of the Arlo business from NETGEAR, as well as driving our subscription services strategy for all three sections.”

Christine Gorjanc, Chief Financial Officer of NETGEAR, added, “During the second quarter of 2018, we used cash flow from operations of $16.9M, which brings our total cash flow generated over the trailing twelve months to $124.2M.”

Business Outlook

Christine Gorjanc, Chief Financial Officer of NETGEAR, commented, “Looking forward to the third quarter of 2018, we expect net revenue to be in the range of $380M to $395M. GAAP operating margin is predictable to be in the range of (2.2) percent to (1.2) percent, which includes about $11.0M of one-time costs associated with the separation, including professional services fees for various advisory and audit related costs. Non-GAAP operating margin is predictable to be in the range of 4.0 percent to 5.0 percent, which includes about $19.0M of costs associated with the separation of Arlo and the corresponding dis-synergies created as we hire talent to duplicate certain roles as that business stands up on its own. Our GAAP tax rate is predictable to be about 108.0 percent and our non-GAAP tax rate is predictable to be about 23.5 percent for the third quarter of 2018.”


Its monthly performance is -13.80 percent and a quarterly performance of 12.64 percent. The last close of the NTGR stock reflects that it traded down -0.98 percent from its 50-day moving average of $68.77. The stock traded above 10.80 percent to its 200-day MA of $62.44.

 

Gary Williams

Written by Gary Williams

Gary Williams:- Technology

I am Gary Williams and I’m passionate about business and finance news with over 9 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind newsstoriesworld.com with a vision to broaden the company’s readership throughout 2015. I am an editor and reporter of “Technology” category.

Investors Focused Stock: BioTelemetry, Inc.’s (NASDAQ: BEAT)

Healthcare Stock Review Report: Chemed Corporation (NYSE: CHE)