NETGEAR, Inc. (NTGR) reported first-quarter 2025 non-GAAP earnings per share of 2 cents, which beat the Zacks Consensus Estimate of a loss of 35 cents. The company reported a non-GAAP loss of 28 cents per share in the year-ago quarter.NETGEAR generated net revenues of $162.1 million, which beat the consensus estimate by 6.6%. The figure also surpassed the company's guidance of $145-$160 million. Revenues were down 1.5% on a year-over-year basis. The company added that the successful destocking plan in 2024 ...

NETGEAR, Inc. (NTGR) came out with quarterly earnings of $0.02 per share, beating the Zacks Consensus Estimate of a loss of $0.35 per share. This compares to loss of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 105.71%. A quarter ago, it was expected that this company would post a loss of $0.25 per share when it actually produced a loss of $0.06, delivering a surprise of 76%.Over the last four quarters, the company ha ...

NETGEAR (NTGR) Q1 2025 Earnings Call April 30, 2025 05:00 PM ET Speaker0 Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. I would now like to turn the conference over to Eric Bailin. Please go ahead, sir. Speaker1 Thank you, operator. Good afternoon, and welcome to NETGEAR's first quarter of twenty twenty five financial results conference call. Joining us from the company are Mr. CJ Prober, CEO an ...

Exhibit 99.1 NEWS RELEASE NETGEAR® REPORTS FIRST QUARTER 2025 RESULTS The accompanying schedules provide a reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non-GAAP basis. CJ Prober, Chief Executive Officer, commented, "We are very pleased with the progress of our ongoing transformation and the execution of our global teams. All of our business units delivered at or above our expectations with year-over-year contribution margin improvements for each of more t ...

NETGEAR, Inc. (NTGR) shares soared 14.2% in the last trading session to close at $23.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.7% loss over the past four weeks.The increase in share price can attributed to President Trump’s announcement of a 90-day pause on reciprocal tariffs, barring China. This led to skyrocketing indices and subsequent increases for most stocks including NETGEAR. Apart from that, the company speci ...

NETGEAR Inc. (NTGR) has seen a significant rally in the past year, with its stock price appreciating 50.6%. The appreciation is better than the Computer Networks Industry, the broader Zacks Computer and Technology and the S&P 500 composite’s growth of 22.8%, 5.6% and 9.4%, respectivelyPrice PerformanceImage Source: Zacks Investment ResearchThe NTGR stock closed the last trading session at $22.11 and is down 30% from its 52-week high of $31.55.Investors may question whether this pullback from 52 week high pr ...

For Immediate ReleaseChicago, IL – March 6, 2025 – Today, Zacks Equity Research Equity are Cisco Systems, Inc. (CSCO) , NETGEAR, Inc. (NTGR) and RADCOM Ltd. (RDCM) .Industry: NetworkingLink: https://www.zacks.com/commentary/2425700/3-stocks-to-consider-from-prospering-networking-industryThe Zacks Computer - Networking industry participants’ performance is expected to get a boost from increasing focus on cloud computing, network security, big data and cloud storage amid the rapid use cases of AI technology. ...

Core Viewpoint - NETGEAR, Inc. (NTGR) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The upgrade in NETGEAR's rating suggests an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [4][9]. - NETGEAR is projected to earn -$0.75 per share for the fiscal year ending December 2025, reflecting a year-over-year change of 17.6% [7]. Analyst Sentiment and Consensus Estimates - Over the past three months, the Zacks Consensus Estimate for NETGEAR has increased by 14.9%, indicating a positive trend in analyst sentiment [7]. - The Zacks Rank system maintains a balanced approach, with only the top 20% of stocks receiving favorable ratings, positioning NETGEAR as a strong candidate for potential market-beating returns [8][9].

Financial Performance - In the fiscal year ended December 31, 2024, the company generated net revenue of $673.8 million, a decrease from $740.8 million in 2023 and $932.5 million in 2022[22]. - The company has experienced lower revenue due to channel partners reducing their inventory levels, which has been exacerbated by high inflation and interest rates[93]. - The company has experienced increased net sales in the third and fourth fiscal quarters due to seasonal demand, with a flatter trend observed in recent years compared to historical patterns[68]. - The company anticipates fluctuations in operating results, which could lead to volatility in stock price[133]. - The company is exposed to credit risk and fluctuations in the market values of its investment portfolio, which could adversely affect its financial condition and operating results[204]. Market Strategy and Competition - The company plans to separate the Connected Home segment into Mobile and Home Networking segments starting Q1 2025 to enhance operational focus and financial management[21]. - The demand for high-performance products is driven by the need for high-speed internet connectivity, new WiFi standards like WiFi 7, and bandwidth-hungry applications such as 8K video streaming and gaming[23]. - The company faces intense competition from major players like Cisco Systems and Amazon, which have greater financial resources and brand recognition[48]. - The company emphasizes the importance of product breadth, price points, and security features to remain competitive in the networking market[50]. - The company has made a strategic shift to focus on premium, higher margin products, committing substantial resources to the development and marketing of Nighthawk mobile hotspot products, Orbi WiFi systems, and Pro AV managed switches[94]. Supply Chain and Manufacturing - The company relies on a limited number of third-party manufacturers for its production needs, which poses risks to its supply chain[15]. - The primary manufacturers include Foxconn, Delta Electronics, and Pegatron, with manufacturing distributed among key suppliers to mitigate risks[55]. - The company relies on sole source suppliers for critical components, including semiconductors for Ethernet switches and wireless products, which could impact product delivery if supply requirements are not met[56]. - The company does not have long-term contracts with third-party manufacturers, increasing the risk of disruptions in manufacturing and product shipments[116]. - Component shortages and delays, particularly due to COVID-19 lockdowns in China, have previously limited the company's ability to meet worldwide demand for its products, impacting revenue and profitability[107]. Research and Development - The company is investing in research and development to create new technologies and services, focusing on trends such as audio and video over Ethernet, multi-Gigabit internet service, and WiFi 7[36]. - The company is introducing next-generation technology, including PoE switches and multi-gigabit Ethernet switches, to meet the growing demand for business networks[45]. - The company has invested significant capital in enhancing financial and enterprise resource planning systems, which may disrupt underlying business operations[144]. - The transition from a hardware-centric business model to a software-focused model includes substantial investments in software research and development, which may not yield expected returns[172]. Cybersecurity and Data Privacy - The company emphasizes the importance of security and privacy in its products, with built-in protections and additional services like Armor to safeguard customer data[24]. - The company has experienced and anticipates ongoing cyber attacks, which could materially affect its business operations and reputation[156]. - The company faces risks related to data protection breaches and cyber-attacks, which could lead to loss of revenue, customer trust, and significant operational disruptions[154]. - Significant penalties for non-compliance with data privacy laws, such as the GDPR, could reach up to €20 million or 4% of annual global revenue, whichever is greater[166]. - The company employs a shared responsibility model for security, placing some responsibility on customers, which could impact customer relationships if security issues arise[158]. Employee and Talent Management - As of December 31, 2024, the company employed 655 full-time employees, with 223 in sales, marketing, and technical support, and 235 in research and development[72]. - The company emphasizes a high-performance culture, setting high standards for employee performance and aligning them with strategic goals[74]. - The company has a global Talent Acquisition strategy focused on attracting top talent through various channels, including employee referrals and university partnerships[80]. - The company operates in a competitive talent market, particularly in technology, which may affect its ability to recruit and retain key personnel[209]. - The company has not experienced any labor disputes and considers its relationship with employees to be good, reflecting a positive workplace culture[72]. Regulatory and Compliance Risks - The company maintains compliance with numerous governmental regulations, including environmental laws, which could impact manufacturing costs and processes[69]. - Compliance with local environmental legislation is crucial, as failure to meet these requirements could harm revenue[122]. - The company is subject to audits by various tax authorities, which may result in additional liabilities for taxes, duties, interest, and penalties, potentially reducing profitability[199]. - The company is exposed to governmental regulations affecting the import and export of encryption technologies, which could adversely impact its international and domestic sales[205]. - The company has received inquiries from government officials regarding data protection efforts, which could lead to regulatory scrutiny and impact business operations[168]. Financial and Tax Considerations - The company has recorded a full valuation allowance for U.S. federal and state deferred tax assets, indicating insufficient profitability to realize these assets as of October 1, 2023[192]. - Changes in tax laws, such as the Tax Cuts and Jobs Act of 2017, require the company to amortize research and development expenditures over five to fifteen years, impacting cash taxes in profitable years[189]. - The company faces exposure to adverse currency exchange rate fluctuations, particularly in Europe, Japan, and Australia, which negatively impacted international revenue and profitability in 2022[183]. - The company hedges its foreign currency exposure primarily through forward contracts, which mature within approximately five months, but these hedges only partially mitigate the financial effects of unfavorable currency movements[184]. - A significant portion of sales is on open credit terms, typically 30 to 60 days in the U.S., which exposes the company to credit risk from customers facing financial challenges[185].

Core Insights - NETGEAR, Inc. (NTGR) has experienced a decrease in total revenue for the quarter ending December 2024, amounting to $182.42 million, which is a decline of 3.3% compared to the same quarter last year [4] - The analysis of international revenue is crucial for understanding the company's financial strength and growth potential, especially given the interconnectedness of the global economy [2][3] International Revenue Analysis - APAC contributed $23.64 million, accounting for 12.96% of total revenue, showing a surprise increase of +2.97% compared to analyst expectations [5] - EMEA generated $35.92 million, representing 19.69% of total revenue, with a surprise increase of +12.96% over expectations [6] - For the ongoing fiscal quarter, analysts project total revenues of $152.24 million, a decline of 7.5% year-over-year, with expected contributions from APAC and EMEA at $22.59 million and $30.87 million, respectively [7] Full Year Projections - The company is projected to achieve total revenue of $685.61 million for the full year, indicating a rise of 1.8% from the previous year [8] - Expected regional contributions for the full year include APAC at 13.6% ($93.38 million) and EMEA at 18.8% ($128.96 million) [8] Market Context - The reliance on international markets presents both opportunities and challenges for NETGEAR, making it essential to monitor international revenue trends for future projections [9] - Analysts are increasingly focused on international operations due to the complexities introduced by geopolitical factors and currency fluctuations [10]