How Netgear's Revenue Revision Will Affect Broadcom, Qualcomm And Others - Netgear (NASDAQ:NTGR)

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.