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Sep 27, 2020
NETGEAR Q3 2020 Earnings Report
Reported record quarterly earnings per share and a revenue increase of 42% year over year.
Key Takeaways
NETGEAR reported strong Q3 2020 results, with revenue of $378.1 million, a 42.2% increase year-over-year, and record earnings per share. The company's performance was driven by robust demand for WiFi and effective supply chain management.
Third quarter net revenue increased by 42.2% year-over-year to $378.1 million.
GAAP operating income was $32.2 million, representing 8.5% of net revenue.
GAAP net income per diluted share reached $0.83, compared to $0.39 in the prior year quarter.
Non-GAAP net income per diluted share was $1.13, up from $0.65 in the same quarter last year.
Revenue by Geographic Location
Forward Guidance
NETGEAR expects continued strength in end market demand for home networks, but has suspended giving guidance for Q4 2020 due to uncertainty around the effects of COVID-19 and the risk of supply chain disruption.
Positive Outlook
- Continued strength in end market demand for home networks.
- Strong liquidity.
- Ability to generate cash.
- Well positioned to serve the demand trends.
- Adapting SMB offerings to drive more sophisticated home office setups.
Challenges Ahead
- New cases of COVID-19 have reaccelerated across many countries.
- Considerable uncertainty around the effects on major markets.
- Difficult to forecast business.
- Heightens the risk of supply chain disruption.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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