Netgear reports Q3 EPS 23c, two estimates (4c)

Reports Q3 revenue $197.8M, two estimates $183.9M. Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, “I’m very pleased with our performance in the third quarter, as NETGEAR delivered results that exceeded our guidance ranges for both the top and bottom lines. Our revenue performance during the seasonally strong back-to-school quarter was bolstered by strong demand for our premium CHP products in both the retail and service provider channels, namely our Orbi 8 and Orbi 9 and 5G mobile hotspots. We are excited by the market’s reception to the launch of our industry-leading WiFi 7 products, the Orbi 97x mesh system at $2299 and the Nighthawk RS700 router at $699, which began shipping in the final two weeks of the quarter. Furthermore, with the retail networking market showing signs that it is stabilizing, we are encouraged by our retail channel partners maintaining, rather than depleting, their inventories. On the SMB side, we continue to be encouraged by growth in our ProAV managed switch products. However, the uncertain macro environment created by high interest rates, geopolitical tensions, and stagnant or negative GDP growth in major markets such as Greater China, Germany and Japan weighed on our SMB business. Accordingly, our SMB channel partners continue to reduce their inventory carrying levels, which will limit our top line potential for this business in the coming quarters.”