NTGR Earnings Prediction
The chart below shows how NTGR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NTGR sees a +0.77% change in stock price 10 days leading up to the earnings, and a -0.24% change 10 days following the report. On the earnings day itself, the stock moves by -0.01%. This data can give you a slight idea of what to expect for the next quarter's release.
NTGR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
182.42M
-3.32%
-0.24%
Gross Margin
32.55%
-6.44%
5.37%
Operating Margin
-5.91%
-1507.14%
-303.09%
Net Margin
-4.87%
453.41%
-110.47%
EPS
-0.31
-416.67%
-110.69%
No Data Available
NTGR Earnings Analysis
NETGEAR Inc Corporation (NTGR.O) Earnings Conference Call
Positive
Strong Cash Position: Strong cash position with $408.7 million in cash and short-term investments, up $13 million from the prior quarter, providing a solid foundation for growth and capital allocation strategies.
Recurring Revenue Surge: Recurring revenue grew 25% year over year, reaching nearly $35 million in annual recurring revenue, driven by the simplification of the ARMOUR subscription service and the launch of the Armor Plus tier.
NFB Segment Revenue Surge: NFB segment revenue increased 14.9% year over year to $80.8 million in Q4, demonstrating strong demand for ProAV managed switch products despite supply constraints.
Improved Cash Flow Management: Successful destocking efforts led to the lowest days sales outstanding (DSOs) in over seven years at 80 days, down from 88 days in the prior quarter, contributing to improved cash flow generation.
Share Repurchase Commitment: Share repurchase program resumed with $10.7 million spent in Q4, totaling $33.6 million for the full year, reflecting a commitment to returning capital to shareholders.
Negative
Q4 2024 Revenue Decline: Revenue for Q4 2024 was $182.4 million, down 3.3% year over year, indicating a decline in sales performance compared to the previous year.
Revenue Decline Analysis: Full year net revenues for 2024 were $673.8 million, down 9.1% compared to 2023, reflecting ongoing challenges in the macroeconomic environment and competitive landscape.
Non-GAAP Operating Loss: The company reported a non-GAAP operating loss of $49.6 million for the full year 2024, resulting in a non-GAAP operating margin of negative 7.4%, highlighting significant profitability issues.
Operating Loss Decline: In Q4, the non-GAAP operating loss was $4.2 million, with a non-GAAP operating margin of negative 2.3%, a decline from the previous year, indicating worsening operational efficiency.
Operating Margin Projections: The first quarter guidance projects a GAAP operating margin in the range of negative 16.4% to negative 13.4%, and a non-GAAP operating margin of negative 10% to negative 7%, suggesting continued financial struggles into 2025.
NTGR FAQs
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NTGR Earning Call Sentiment
Earnings call transcript: NETGEAR Q4 2024 beats EPS forecast, stock drops
NTGR.O
-1.05%Positive
The earnings call highlights mixed signals: a decline in revenue and operating margins due to macroeconomic challenges and competitive pressures, but also growth in recurring revenue and a robust share repurchase program. The Q&A reveals supply constraints and vague management responses, adding uncertainty. While the optimistic guidance for 2025 and capital allocation plans are positive, the lack of clear resolution on supply issues tempers enthusiasm. Overall, these factors suggest a neutral market reaction in the short term.
