NETGEAR’s Q3 2024 Performance Shows Strong Turnaround
Company Announcements

NETGEAR’s Q3 2024 Performance Shows Strong Turnaround

Netgear ( (NTGR) ) has realeased its Q3 earnings. Here is a breakdown of the information Netgear presented to its investors.

NETGEAR, Inc., headquartered in San Jose, California, is a global leader in intelligent networking solutions, providing innovative products for businesses, homes, and service providers.

In its third-quarter earnings report for 2024, NETGEAR announced a net revenue of $182.9 million, surpassing the high end of their guidance, and reported both GAAP and non-GAAP profitability. The company also achieved its fifth consecutive quarter of free cash flow generation, significantly boosting its cash and cash equivalents to $395.7 million by the end of the quarter.

Key financial highlights include a GAAP operating income of $95.8 million, marking a substantial turnaround from the previous year’s operating loss. Despite a 7.6% decline in revenue from the prior year, NETGEAR delivered a GAAP net income per diluted share of $2.90, a stark contrast to the net loss per diluted share of $2.87 from the previous year. The company also successfully reduced its inventory by $27 million, showing effective operational management.

Strategically, NETGEAR made significant strides in its ProAV business, achieving a record quarter in end-user sales and expanding its manufacturing partnerships. The launch of the M7 Pro, a 5G and WiFi 7 mobile hotspot, highlights the company’s commitment to innovation and market leadership. Management expresses confidence in the company’s positioning for future growth opportunities.

Looking ahead, NETGEAR anticipates more predictable market-aligned performance, with expectations of continued growth in the ProAV line of managed switches and increased promotional activities in the retail sector during the holiday period. The company remains focused on long-term profitability and shareholder value creation.

Related Articles
TipRanks Auto-Generated NewsdeskNetgear Navigates AI Transformation Amidst Business and Regulatory Challenges
TheFlyNetgear reports Q3 EPS 17c, one estimate (4c)
Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App