NetGear Shares Slides Post Q1 Preliminary Results

NetGear, Inc. NTGR reported first-quarter preliminary results. It plans to release the full results on April 27, 2022.
NTGR reduced its revenue guidance and now expects net revenue to be between $202 million and $212 million, compared to prior guidance of $225 million to $240 million.
The company says the U.S. consumer WiFi market, which had exited 2021 at ~15% above 2019 levels, declined in the quarter, ending roughly flat to 2019 levels.
GAAP operating margin is expected to be between (7.7)% and (6.7)%, compared to prior guidance of (1.5)% to (0.5)%.
Non-GAAP operating margin is expected to be between (5.3)% and (4.3)%, compared to prior guidance of 1% to 2%.
NetGear stated that lower CHP revenue performance and a loss in top line leverage negatively impacted operating margin performance.
Price Action: NTGR shares are trading lower by 12.75% at $20.19 during the post-market session on Monday.
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