Netgear Earnings Preview

Netgear NTGR will release its quarterly earnings report on Wednesday, 2025-04-30. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Netgear to report an earnings per share (EPS) of $-0.37.

Netgear bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

Last quarter the company beat EPS by $0.18, which was followed by a 1.35% increase in the share price the next day.

Here's a look at Netgear's past performance and the resulting price change:

Stock Performance

Shares of Netgear were trading at $24.32 as of April 28. Over the last 52-week period, shares are up 61.18%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Netgear

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Netgear.

Analysts have given Netgear a total of 1 ratings, with the consensus rating being Outperform. The average one-year price target is $29.0, indicating a potential 19.24% upside.

Analyzing Analyst Ratings Among Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Applied Optoelectronics, Ribbon Comms and Adtran Holdings, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Applied Optoelectronics, with an average 1-year price target of $33.2, suggesting a potential 36.51% upside.
• Analysts currently favor an Outperform trajectory for Ribbon Comms, with an average 1-year price target of $6.0, suggesting a potential 75.33% downside.
• Analysts currently favor an Buy trajectory for Adtran Holdings, with an average 1-year price target of $13.33, suggesting a potential 45.19% downside.

Overview of Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for Applied Optoelectronics, Ribbon Comms and Adtran Holdings, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Netgear ranks at the bottom for Revenue Growth and Gross Profit among its peers. It is in the middle for Consensus rating and Return on Equity.

About Netgear

Netgear Inc provider of networking technologies for businesses, homes, and service providers. It delivers a wide range of intelligent solutions designed to unleash the full potential of connectivity. The group has two segments: NETGEAR for Business and Connected Home which offers reliable, easy-to-use, high-performance networking solutions, including switches, routers, access points, software, and AV over IP technologies, tailored to meet the diverse needs of organizations of all sizes. The Connected Home segment offers connectivity, powerful performance, and enhanced security features right out of the box, designed to help keep families safe online, and Others. It conduct business across three geographic territories: Americas; Europe, Middle East and Africa; and Asia Pacific.

A Deep Dive into Netgear's Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Challenges: Netgear's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -3.32%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Netgear's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -4.87%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Netgear's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -1.63%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.04%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Netgear's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.06.

To track all earnings releases for Netgear visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.