Netgear (Nasdaq: NTGR ) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Netgear met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins improved, net margins increased.
Netgear logged revenue of $309.2 million. The eight analysts polled by S&P Capital IQ expected a top line of $306.9 million. Sales were 20% higher than the prior-year quarter's $258.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.69. The eight earnings estimates compiled by S&P Capital IQ averaged $0.62 per share on the same basis. GAAP EPS of $0.60 for Q4 were 62% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 30.7%, 90 basis points worse than the prior-year quarter. Operating margin was 10.9%, 100 basis points better than the prior-year quarter. Net margin was 7.4%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $314.1 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $1.33 billion. The average EPS estimate is $2.75.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,270 members out of 2,342 rating the stock outperform, and 72 members rating it underperform. Among 776 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 770 give Netgear a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Netgear is hold, with an average price target of $40.38.
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