Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Netgear Clawing Back Losses Following Weaker Than Expected Preliminary Results

Published 04/19/2022, 11:40 PM
Updated 04/19/2022, 11:40 PM

By Sam Boughedda

Investing.com -- NETGEAR Inc (NASDAQ:NTGR) stock fell more than 10% premarket after it reported preliminary results for the quarter that ended April 3, but it is now regaining some of its losses from earlier in the session.

After hitting a low of $20.55, Netgear stock is now trading around the $22.05 mark, or -4.7%.

The company said it expects to report net revenue for the first quarter of 2022 to be between $202 million and $212 million, compared to prior guidance of $225 million to $240 million.

The company said the US consumer WiFi market declined in the first quarter of 2022, ending roughly flat to 2019 levels, while the decline in market size negatively impacted the performance of the company's CHP business, resulting in the decline in revenue.

Furthermore, the company was impacted by supply chain disruptions to factories in March due to the Covid-related lockdowns in Shenzhen, China. Netgear added that this resulted in a "meaningful lost opportunity to deliver higher SMB revenue in the quarter."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.