Shares of networking equipment vendor Netgear (NTGR) are down $6, or 17%, at $29 in late trading after the company this afternoon reportedQ2 revenue and earnings per share that missed analysts’ estimates, and forecast the current quarter’s results below consensus as well.
Revenue in the three months ended in June rose 10%, year over year, to $321 million, yielding EPS of 64 cents a share.
Analysts on averaged had been modeling $323.7 million and 68 cents.
Forthe current quarter, the company sees a decline in its sales to servcie providers because of “reduced marketing activities among our customers.” It said the retail and commercial business divisions would fare better during the quarter. The company projects revenue of $310 million to $325 million.
That is below the average estimate for $344 million.
CEO Patrick Lo remarked that “”Despite the challenging macro environment in Europe, we are pleased that we finished the second quarter with double digit year-over-year worldwide revenue growth.”
Netgear will host a conference call with analysts starting at 5 pm, Eastern time, and you can catch the webcast of it here.
Correction: A prior version of this post listed an incorrect earnings per share figure for Netgear. The correct amount was 64 cents per share. My apologies for any confusion caused by the error.
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