NETGEAR, Inc. (NTGR) stock announced second-quarter 2021 ended June 27, 2021, financial results after which the NTGR stock price saw a decline of 15.00% to drop at $31.50 a share at the time of this writing. The stock was previously gaining in the trading session and closed with a 0.62% rise. Let’s discuss the recent events of the NTGR stock in detail.
- The net revenue in the second quarter of 2021 for the NTGR stock increased by 10.3% to reach $308.8 million as compared to the prior-year quarter.
- NTGR stock reported $21.5 million GAAP operating income in the reported quarter as compared to $8.9 million in the comparable quarter of the previous year.
- Non-GAAP operating income for the reported quarter was $26.5 million as compared to $21 million in the same quarter of the previous year.
- GAAP net income was reported at $0.57 per diluted share in the second quarter of 2021 as compared to $0.20 in the same prioryear quarter.
- The non-GAAP net income of the NTGR stock was $0.66 per diluted share as compared to $0.54 in the comparable quarter of the previous year.
- Net income for the NETGEAR stock was 17.8 million, or 57 cents a share lesser than the net income of $22.96 million, or 72 cents a share in the same tenure of the previous year.
Third Quarter Outlook:
- The third-quarter revenue for the NTGR stock is expected to be between $285 million to $300 million.
- GAAP operating margin is expected to be in the range of 2.1% to 3.1% while non-GAAP operating margin is estimated between 5.0% to 6.0%.
- The stock expects its GAAP and non-GAAP tax rate to be approximately 27.5% and 24.5% respectively.
NETGEAR stock on July 21, 2021, announced the appointment of David J. Henry to the company’s board of directors. Furthermore, the NTGR stock reported his promotion to President & GM of Connected Home Products and Services. In 2004, David became part of NETGEAR and took the responsibility of product line manager for Wifi routers. On the other hand, Gregory J. Rossmann will step down from the board and will transition to his next professional role. Gregory served NETGEAR for almost two decades.
Though financial results represent 10.3% topline growth over the year, still it missed the net income estimates that made the stock gloomy today. The factory closure due to Covid-19 has done the damage as the stock falls short of its operating margin goals.