Arlo Technologies Inc. (ARLO) stock is surging 11.84% in pre-market trading on Friday, following the release of its better-than-expected first-quarter 2025 financial results. The smart home security company has impressed investors with its earnings performance, despite facing some challenges.
Arlo reported adjusted earnings per share (EPS) of $0.15 for the quarter ended March 31, significantly beating the analysts' consensus estimate of $0.12. This result also shows substantial improvement from the $0.09 per share reported in the same quarter last year. Revenue for the quarter came in at $119.066 million, surpassing the expected $118.4 million, although it represents a 4.1% decrease compared to the previous year.
Despite the strong adjusted earnings, it's worth noting that Arlo reported a quarterly loss of $835,000 on a GAAP basis. However, the market seems to be focusing on the company's ability to exceed expectations and improve its bottom line. Wall Street maintains a positive outlook on Arlo Technologies, with a consensus "buy" rating and a median 12-month price target of $19.50. The company's consistent performance in beating or meeting earnings estimates over the past four quarters appears to be bolstering investor confidence, contributing to the significant pre-market stock price increase.
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