NETGEAR beats by $0.27, beats on revs; guides Q4 revs below two analyst estimate (10.51 -0.43)
- Reports Q3 (Sep) earnings of $0.23 per share, excluding non-recurring items, $0.27 better than the two analyst estimate of ($0.04); revenues fell 20.7% year/year to $197.85 mln vs the $183.85 mln two analyst estimate.
- Co issues downside guidance for Q4, sees Q4 revs of $175-190 mln vs. $214.92 mln two analyst estimate.
- "We are also encouraged that our retail channel partners are now maintaining rather than depleting their inventories. However, as interest rates remain high, we will continue to work with our SMB channel partners to optimize their inventory carrying levels during the next few quarters. Accordingly, we expect CHP to be approximately flat sequentially, in line with market seasonality, and SMB to be down sequentially which would result in overall fourth quarter net revenue in the range of $175 million to $190 million. As we continue to make meaningful progress in reducing our own inventory levels, we will be consuming older, higher cost inventory. We expect we will be back to normal inventory levels and normal inventory costs by the middle of next year."