Netgear, Inc. (NASDAQ:NTGR) reported Q2 EPS of ($0.19), $0.05 better than the analyst estimate of ($0.24). Revenue for the quarter came in at $223.2 million versus the consensus estimate of $209.8 million.
GUIDANCE:
Mr. Murray continued, “With solid demand and improving supply, we expect SMB and the service provider channel to continue to gain momentum in the back half of the year. We expect third quarter revenue from the service provider channel will be approximately $40 million, and SMB revenue to grow sequentially. With some of our US retail customers intending to shrink their inventory positions further, we expect to continue working with them in the coming quarter to optimize their inventory levels. Together, these factors lead us to expect our third quarter net revenue to be in the range of $240 million to $255 million. While the supply picture continues to improve, we still expect to spend on airfreight to maximize our SMB revenue. As a result of these factors, our GAAP operating margin for the third quarter is expected to be in the range of (1.0)% to 0.0%, and non-GAAP operating margin is expected to be in the range of 1.5% to 2.5%. Our GAAP tax rate is expected to be approximately 22.0%, and our non-GAAP tax rate is expected to be 15.0% for the third quarter of 2022.
While we are confident in our ability to provide guidance at this time, we do so with the caveat that considerable uncertainty remains in the market due to the COVID-19 pandemic and supply chain conditions continuing to remain challenged and, should unforeseen events occur, in particular challenges related to closures affecting our manufacturing partners’ operations, increased transportation delays into any of our regional distribution or manufacturing centers, greater than expected freight or component costs, or lower than expected end market demand, our actual results could differ from the foregoing guidance.”