Netgear (Nasdaq: NTGR ) is expected to report Q2 earnings on July 25. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Netgear's revenues will grow 10.2% and EPS will contract -12.5%.
The average estimate for revenue is $353.2 million. On the bottom line, the average EPS estimate is $0.56.
Last quarter, Netgear tallied revenue of $293.4 million. GAAP reported sales were 9.9% lower than the prior-year quarter's $325.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.50. GAAP EPS of $0.39 for Q1 were 40% lower than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 29.9%, 80 basis points worse than the prior-year quarter. Operating margin was 8.3%, 290 basis points worse than the prior-year quarter. Net margin was 5.2%, 250 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $1.43 billion. The average EPS estimate is $2.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,246 members out of 2,320 rating the stock outperform, and 74 members rating it underperform. Among 621 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 612 give Netgear a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Netgear is outperform, with an average price target of $38.57.
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