logo
  

Netgear Q4 Sales Outlook Below Street View

California-based internet and wireless communication company, NETGEAR, Inc. (NTGR) has provided a weak outlook for sales after reporting a lower profit in the third quarter.
The company expects fourth-quarter sales between $250 million and $265 million. On average, four analysts polled by Thomson Reuters expect revenues of $294.96 for the fourth quarter.

The company said sales will be impacted by the reduced leverage from its topline compound coupled with a rapid increase in freight costs.

The company expects the operating margin for the fourth quarter to be in the range of (0.5)% to 0.5%, which, after adjustments, stand at 2.0% to 3.0%.

Bryan Murray, Chief Financial Officer of the company said, "We are also seeing logistics costs rapidly increasing with ocean freight costs currently standing at eight times normal historical rates. In the third quarter, we worked with our retail channel partners to optimize their inventory levels. With the U.S. consumer WiFi market growth coming in below our prior expectations, these activities will continue into Q4. Additionally, we expect lower service provider revenue, which will be impacted by supply availability. All of this is expected to result in a sequential decline in revenue for the CHP business."

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Delta Air Lines said it sees weather-related flight cancelations as AT&T and Verizon readies for 5G roll out in and around the vicinity of major U.S. airports. Most of the other airlines also confirmed the same as the implementation of the new C-Band 5G service is expected to interfere with the working of onboard aircraft instruments. Financial services firm Morgan Stanley (MS) reported Wednesday a profit for the fourth quarter that increased 10 percent from last year, reflecting 7 percent revenue growth amidst strength in Wealth Management and Investment Management business segments. Bank of America Corp. (BAC) reported Thursday that net income applicable to common shareholders for the fourth quarter grew 30 percent to $6.77 billion from last year's $5.21 billion, with earnings per share increasing to $0.82 from $0.59 in the prior year, reflecting strong operating leverage as revenues...
RELATED NEWS
Follow RTT