Netgear Clawing Back Losses Following Weaker Than Expected Preliminary Results
2022.04.19 18:56
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.”
