Thursday, April 28, 2011

Stock Move Based on Quarterly Results, Netgear Inc ( NASDAQ: NTGR )

Netgear Inc.
Netgear Inc ( NASDAQ: NTGR) announced first quarter numbers, well above expectations with 54 % rise in revenue. Company has provided higher guidance for next quarter. Stock of the company move 18 % to $ 40.10.

Revenue jumped 32% to $278.8 million. In February, the company predicted $250 million to $260 million. Profit of the company $ 21.2 million, or 57 cents a share, from $13.7 million, or 38 cents a share. Excluding items like stock-based compensation, earnings rose to 65 cents a share from 48 cents. Analysts surveyed by Thomson Reuters were expecting 52 cents a share. Gross margin fell to 31.5% from 34.4%.

For current quarter, guidance from the company was $ 270 million to $ 280 million, while analysts' average estimate was $241 million. 

Thursday, Chairman and Chief Executive Patrick Lo said new products continue to exceed the company's expectations and enable it to gain market share. In the previous period, Netgear's revenue climbed on higher-than-expected sales of new products, although its earnings were short of the consensus estimate.

Overall, the tech sector sector experienced a recovery last year as demand rebounded from marked weakness in the recession. In recent quarters, the improvement appears to be cooling, based on such signs as easing consumer demand.

(Source: Dow Jones NewsWire )


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