NETGEAR, Inc. (NTGR) Reports Q2 Loss, Tops Revenue Estimates

Company Performance - NETGEAR, Inc. reported a quarterly loss of $0.74 per share, which was better than the Zacks Consensus Estimate of a loss of $0.82, but worse than a loss of $0.16 per share a year ago, indicating an earnings surprise of 9.76% [1] - The company posted revenues of $143.9 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 8.45%, although this represents a decline from year-ago revenues of $173.41 million [2] - Over the last four quarters, NETGEAR has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Future Outlook - The sustainability of NETGEAR's stock price movement will depend on management's commentary during the earnings call and the earnings outlook for the coming quarters [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $165.16 million, and for the current fiscal year, it is -$1.57 on revenues of $631.13 million [7] Industry Context - The Computer - Networking industry, to which NETGEAR belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact NETGEAR's performance [5]