Who says you can't play and win against bigger, better-funded competitors? NetGear (Nasdaq: NTGR) just did. Last night, the company destroyed first-quarter estimates and in the process shamed peer Cisco (Nasdaq: CSCO).

We'll get into the details of NetGear's Q1 results momentarily. First, here's a closer look at the business from a Foolish perspective:




Makes routers and other networking gear for connecting home consumer electronics to each other and the Internet.

CAPS stars (out of 5)


Total ratings


Percent bulls


Percent bears


Bullish pitches

333 out of 346

Highest-rated peers

Digi International, Spirent Communications, Network Engines

Data current as of April 29.

Revenue grew 32% year-over-year to $278.8 million, while adjusted profits soared 35% to $0.65 a share. Wall Street wasn't even close, having predicted $256.5 million and $0.52, respectively. NetGear seems to be hitting Cisco's Linksys group where it hurts.

For all the hype over Android and Motorola Mobility's (NYSE: MMI) mediocre-selling Xoom tablet, it now appears that NetGear was the big winner of this year's Consumer Electronics Show. The networker showed off 20 new products in January.

In February, management raised guidance on the belief its double-barrel blast of geekery would attract a flood of new buyers. Now it turns out they were lowballing. Much more of this and analysts will be forced to raise their projections for 20% annual earnings growth over the next five years.

Do you agree? Disagree? Use the comments box below to tell us what you think about NetGear's report, approach, and competitive differentiation. You can also rate NetGear in Motley Fool CAPS.

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NetGear is a Motley Fool Stock Advisor selection. Motley Fool Alpha LLC owns shares of Cisco. Try any of our Foolish newsletter services free for 30 days.

Fool contributor Tim Beyers is a member of the Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has created a bull call spread position in Cisco and is also on Twitter as @TheMotleyFool. Its disclosure policy hasn't come down from its caffeine high. Yet.