Netgear Rallies On Big Q3 Earnings Beat

Netgear (NTGR) ratcheted higher after hours on a strong Q3 financial report.

The maker of consumer networking products posted revenue of $171.1 million and non-GAAP profits of 31 cents a share, trouncing the Street consensus of $156 million and 8 cents. Revenue was down from $189.4 million a year ago, but up from $144.7 million in Q2.

For the fourth quarter, the company sees revenue of $170 million to $180 million, which topped the Street consensus of $164.8 million.

Netgear did say that it sees Q4 non-GAAP operating margin of 7%-9%, which would be down from 10.6% in the third quarter. But the strong results carried the day.

In a statement, CEO Patrick Lo said the company saw “robust back-to-school demand” in the quarter, as well as market share gains, resulting in year-over-year growth in U.S. revenues.

In late trading, NTGR rallied $1.69, or 9.3%, to $19.95, a new 52-week high.