Netgear slides as China lockdowns, slowing U.S. WiFi market dent outlook

NetGear

18/04/2022 23:07

** Network equipment maker's shares  NTGR.O  fall ~12% to
$20.41 in extended trading 
    ** NTGR cuts revenue and operating margin forecasts for Q1
ended April 3, citing a hit from COVID-related lockdowns in
China and a slowdown in U.S. consumer WiFi market urn:newsml:reuters.com:*:nBw6qNV0Na
    ** Sees Q1 net revenue between $202 mln and $212 mln, down
from the $225 mln to $240 mln range previously expected;
analysts on avg project revenue of $231.6 mln - Refinitiv data
    ** U.S. consumer WiFi market declined in Q1, ending roughly
flat to pre-pandemic levels, resulting in a hit to revenue in
co's connected home products segment - NTGR
    ** Says supply of components to its factories were "severely
disrupted" in March due to COVID-induced lockdowns in Shenzhen
    ** NTGR now expects Q1 adjusted operating margin to decline
between 5.3% and 4.3%, vs prior guidance of 1% to 2% growth 
    ** Stock down ~21% YTD, as of Monday's close

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))