Netgear shares surge after sales jump in second quarter

Reuters News
|
Posted: Jul 27, 2017 3:40 PM

By Marc Vartabedian

SAN FRANCISCO (Reuters) - Shares of Netgear Inc jumped 15 percent on Thursday, a day after second-quarter revenue beat expectations, helped by strong sales of its security camera.

Netgear on Wednesday reported second-quarter revenue of $330.7 million, up 6.1 percent from the prior year. Analysts, on average, had expected $324.6 million.

Netgear's jump in units sold, combined with news the company would cease a price discount on its cameras, eased investor fears over eroding operating margins, said Hamed Khorsand, an analyst with BWS Financial.

Netgear has been banking on sales of its internet security camera, which give users the option to view video wirelessly with their mobile device, in order to expand its business beyond network routers and other connectivity devices.

"It fits in to the theme of connected home," said Khorsand.

Also on Thursday, network company F5 Networks Inc fell 7.5 percent after missing expectations for the second consecutive quarter amid slowing international demand. Shares are down nearly 18 percent from January.

(Reporting By Marc Vartabedian; Editing by Alexandria Sage and Chris Reese)