- Today, Netgear Inc NTGR slashed its 1Q revenue outlook by 11% to $207 million at the midpoint from $232 million prior.
- The revision reflected, "The U.S. consumer WiFi market, which had exited 2021 at ~15% above 2019 levels, declined in the first quarter of 2022, ending roughly flat to 2019 levels.
- The decline in market size negatively impacted the performance of its CHP business which saw a decline in revenue relative to our expectations earlier in the quarter.
- Despite SMB's revenue performance meeting expectations, Shenzhen's Covid lockdown severely disrupted the supply of components to its factories in March.
- KeyBanc saw the preannouncement most negatively impact Broadcom Inc AVGO, Qualcomm Inc QCOM, Qorvo Inc QRVO, and Skyworks Solutions Inc SWKS, which supply WiFi and RF chips to NTGR.
- The update also carried negative implications for Silicon Laboratories Inc SLAB and Synaptics Inc SYNA, which negatively impact meaningful exposure to consumer IoT.
- Price Action: NTGR shares closed lower by 3.33% at $22.37 on the last check Tuesday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.