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What: Shares of networking equipment maker NETGEAR
So what: NETGEAR shares have slid in recent months on worries over rising costs, but today's big first-quarter beat -- adjusted EPS of $0.73 versus the consensus of $0.68 -- suggests that those concerns are a tad overblown. Demand was particularly strong from service providers and in Asia, which is reigniting optimism over its long-term growth prospects as well.
Now what: Based on those tailwinds, management now sees second-quarter revenue of $315 million-$330 million, versus Wall Street's view of $320.3 million. "We expect to continue to benefit from the momentum on service provider demand in the second quarter 2012," Chairman and CEO Patrick Lo said. With the stock still down about 17% from its highs of just two months ago and trading at a forward P/E of 11, there might even be room to buy into that tailwind.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of NETGEAR. Try any of our Foolish newsletter services free for 30 days.