Netgear, Inc. (NTGR) Tops Q4 EPS by 15c

Netgear, Inc. (NASDAQ: NTGR) reported Q4 EPS of $0.99, $0.15 better than the analyst estimate of $0.84. Revenue for the quarter came in at $367.1 million versus the consensus estimate of $345.49 million.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, “NETGEAR ended 2020 with another outstanding quarter, delivering 45% revenue growth and 11% non-GAAP operating margin. In a year without parallel, the NETGEAR team rallied against countless obstacles to continually surpass our expectations while remaining efficient to produce strong operating leverage on our growth. At the heart of the strong demand for our products are families working and learning from home – these families need to solve for high speed, high-capacity bandwidth that stretches to every corner of the home. This is fueling rapid growth of a new premium segment that is defined by a WiFi 6 mesh system with tri-band architecture. At the forefront of this technology, NETGEAR has commanding share in this segment. We continued our pace of adding new subscribers, which were up by 68,000 in Q4 to 437,000 paid subscribers, and far surpassed our goal for the year. As a long-tenured market leader NETGEAR will continue to innovate to deliver the leading products and services that customers increasingly demand.”

Mr. Lo continued, “We sustained our strong momentum in Q4 in Connected Home and delivered more than 60% year over year growth in both the retail and service provider channels. On the SMB side, we continued to execute on our strategy to offer high performance ProAV and work-from-home solutions, with leading edge WiFi access points plus plug-and-play switches. This produced another quarter of strong sequential growth, coming in at 16%, and a return to year over year growth. We feel NETGEAR is on a great trajectory and are excited about 2021.”

Bryan Murray, Chief Financial Officer of NETGEAR, added, “We had another impressive quarter of strong cash flow, generating $46.1 million in cash from operations in the fourth quarter. Preserving strong liquidity and generating cash are paramount as the pandemic continues into 2021.”

GUIDANCE:

Netgear, Inc. sees Q1 2021 revenue of $300-315 million, versus the consensus of $313.27 million.

For earnings history and earnings-related data on Netgear, Inc. (NTGR) click here.

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