NetGear Shares Rally 8% After Earnings Above Expectations

Shares of NetGear Inc. rallied 8% late Wednesday after the company topped earnings expectations and updated third-quarter sales. The San Jose, Calif., company said it earned $14.6 million, or 44 cents a share, in the second quarter, compared with $16 million, or 48 cents a share, in the second quarter of 2016. Adjusted for one-time items, the company earned $19.9 million, or 60 cents a share, compared with $24.1 million, or 72 cents a share, a year ago. Revenue rose 6% to $331 million, compared with $312 million a year ago. Analysts polled by FactSet had expected adjusted earnings of 54 cents a share on sales of $325 million. NetGear said it expects third quarter 2017 net revenue to be in the range of $340 million to $355 million. The analysts surveyed by FactSet see third-quarter sales at $349 million. Shares ended the regular session down 0.8%.