By The Associated Press
Friday, October 23, 2009
Shares of Netgear Inc. rose Friday after a strong back-to-school season and lower operating costs nearly tripled its third-quarter earnings.
The maker of networking equipment, such as routers and switches for homes and business, said demand from small- and medium-sized businesses also improved in all regions. Netgear said it's continuing to gain market share.
The company earned $8.5 million, or 24 cents per share, in the quarter, compared with $3.1 million, or 9 cents, in the same quarter a year ago.
Excluding one-time items, Netgear's profit came to 31 cents per share, up from 19 cents. Revenue fell by 4.6 percent to $171.1 million.
The results were well ahead of what analysts were expecting. On average, they forecast earnings of 8 cents per share and revenue of $156 million, according to Thomson Reuters.
Looking ahead, Netgear said it expects fourth-quarter revenue to range from $170 million to $180 million. Analysts are expecting $175.1 million.
Shares of San Jose-based Netgear were up 29 cents, or 1.6 percent, to $18.55 in afternoon trading.