From Seekingalpha · Daniel Jones · · 40s
Netgear Downgraded to Sell
Netgear's revenue declines and profit volatility lead to a sell rating downgrade.
In brief
Netgear's revenue declines and profit volatility lead to a sell rating downgrade. Netgear is downgraded from buy to sell due to persistent revenue declines and volatile profitability. Originally reported by Seekingalpha.
Netgear Downgraded
Netgear is downgraded from 'buy' to 'sell' due to persistent revenue declines and volatile profitability.
Consumer Segment Contracting
NTGR's Consumer segment continues to contract due to intentional business harvesting and soft home networking retail markets.
Enterprise Segment Strength
Enterprise segment shows strength with Pro AV product line driving revenue and profit growth.
Cash Position and Stabilization Needed
Despite strong net cash position of $267.9 million, clear bottom-line stabilization is required before rating reconsideration.
The key point
Netgear is downgraded from buy to sell due to persistent revenue declines and volatile profitability.
