Netgear reports Q3 adjusted EPS 12c, consensus (9c)

Reports Q3 revenue $184.6M, consensus $172.66M. CJ Prober, Chief Executive Officer, commented, “In the third quarter, the strong operational performance of our team enabled us to deliver revenue and non-GAAP operating margin above the high end of our guidance for a sixth consecutive quarter. We delivered record non-GAAP gross margin for the second consecutive quarter, up 180 basis points sequentially, which allowed us to achieve positive non-GAAP operating income for the first time this year, and non-GAAP earnings for the third consecutive quarter. Our ability to successfully navigate supply headwinds enabled material improvement in shipments of our market-leading ProAV managed switch products, allowing us to outperform our expectations for the higher-margin Enterprise segment (formerly named NETGEAR (NTGR) for Business). These results underscore the success of the first phase of our strategic transformation in building a healthier, more resilient business for the long term, and we are only beginning to see the initial benefits of our multi-pronged transformation strategy. We expect the culmination of these efforts to allow us to drive non-GAAP profitability each quarter this year while still making significant investments in areas we believe will drive long-term profitable growth and shareholder value creation.”