Netgear Earnings Preview: Get Ahead of the Analysts

Netgear (NASDAQ:NTGR) will report earnings after markets close on Thursday, April 25th. NETGEAR, Inc. provides networking products designed for small businesses and homes. The Company’s suite of products enables small businesses and homes to share Internet access, peripherals, digital content, and applications among multiple personal computers and other Internet-enabled devices. NETGEAR markets and sells its products through distributors to a network of resellers.

Here is your Cheat Sheet to Netgear Earnings:

Earnings Expectations: Analysts expect earnings of $0.59 per share on revenues of $299.66 million. Currently, the company’s P/E ratio stands at 12.35.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.64 to a profit $0.62. For the current year, the average estimate is a profit of $2.68, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Netgear has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 743.34 686.60 902.05 1,181 1,272
Diluted EPS ($) 0.51 0.27 1.41 2.41 2.23

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 309.16 325.62 320.66 315.21 310.44
Diluted EPS ($) 0.60 0.65 0.56 0.61 0.41

Past Performance:
Netgear has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]