|US INITIAL CLAIMS||192|
|US CONTINUOUS CLAIMS||1653|
|US TRADE BALANCE||-49.40|
Netgear Inc. shares plunged Wednesday in after-hours trading after the networking company s earnings report included a downbeat forecast attributed to issues with service providers. Netgear reported first-quarter earnings of $12.8 million, or 39 cents a share, on sales of $249.1 million, up from earnings of 17 cents a share on sales of $245.2 million a year ago. However, Netgear expects second-quarter revenue and margins to decline year-over-year. "Due to reduced service provider shipments, our second quarter net revenue is expected to be in the range of $215 million to $230 million," Chief Financial Officer Bryan Murray said in a statement. "Given this decline in our topline and the increased marketing spend to support our WiFi 6 initiatives, second quarter GAAP operating margin is expected to be in the range of 0% to 1%, and non-GAAP operating margin is expected to be in the range of 4% to 5%." The stock originally fell more than 14% in late trading, but calmed down to losses of 5% to 7% later in the after-hours session. Netgear shares have declined more than 9% in the past year, as the S&P 500 index has gained 11.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.