Netgear (NASDAQ: NTGR) saw its shares soar 5.43% in after-hours trading on Wednesday, following the release of its second-quarter earnings report that significantly exceeded analyst expectations. The networking equipment manufacturer demonstrated a remarkable turnaround from last year's losses, surprising investors with both top and bottom-line beats.
For the quarter ended June 30, Netgear reported adjusted earnings of $0.06 per share, a striking contrast to the analyst consensus estimate of a $0.15 loss per share. This represents a 140% beat and a substantial improvement from the $0.74 loss per share reported in the same period last year. Revenue also outperformed, coming in at $170.5 million, surpassing the expected $162.06 million by 5.21% and marking an 18.49% increase from the previous year's $143.9 million.
Despite facing challenges earlier in the year, with shares down 13.7% for the quarter and 10% year-to-date before this earnings release, Netgear's strong performance has reignited investor interest. The company's outlook remains positive, with Q3 revenue guidance set at $165-180 million. Wall Street maintains a "buy" rating on the stock, with a median 12-month price target of $29.00, suggesting potential further upside from its last closing price of $25.09.
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