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NetGear Inc. (NTGR) Stock Trends Lower Following Disclosure of Financial Reports for Q3 2021

NetGear Inc. (NTGR) stock prices were down by 0.73% as of the end of the trading day on October 27th, 2021. This brought the price per share down to USD$31.38. Subsequent premarket fluctuations saw the stock dip by 10.80%, bringing it down to USD$27.99.

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NTGR Stock’s Financial Reports

October 27th, 2021 saw NTGR stock report topline revenue for the third quarter of fiscal 2021 that was in line with its previously announce guidance. The company also reported having exceeded its previous guidance for non-GAAP operating margin. This result was largely driven by the performance of the company’s SMB business. Despite SMB products remaining significantly supply constrained, SMB revenue growth was reported as having exhibited quarter over quarter growth of 3.4%. Year over year growth for SMB revenue was reported to have increased by 33%. In regard to its CHP segment, the consumer retail WiFi market grew 15% as compared to the 2019 levels.

Focus on Premium Market

The company continues to maintain a focus on premium WiFi as a core long term focus, on account of its accounting for a higher margin segment of the market. This enables NTGR stock to facilitate the ability to allow consumers to work from anywhere, as a part of its hybrid work infrastructure of businesses and homes worldwide.

Success of Premium Offerings

The company continues to report meaningful growth in its USD$1000 and higher high end WiFi mesh systems. NTGR stock’s recent introduction of its USD$1500 Quadband WiFi 6E Orbi was met with favorable reception by the market, consolidating the company’s strategy of providing industry leading WiFi experiences for its customers. The super premium market is rife with unprecedented opportunities, which the company aims to aggressively capitalize on over the upcoming years.

NTGR Stock Builds on Success

NTGR stock reported 552,000 paid subscription services as of the end of the third quarter of fiscal 2021. The company anticipates hitting its first major milestone of one million subscribers over the course of the next three years. The company’s ProAV switching business has generated promising momentum, which it aims to carry through to the start of the upcoming fiscal year.

Future Outlook for NTGR Stock

NTGR stock is poised to capitalize on the momentum generated over the course of the third quarter of fiscal 2021. The company is keen to build on the success of its financial reports for the quarter as it continues to aggressively expand. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate significant and sustained increases in shareholder value over the long term.

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