NETGEAR, Inc. (NTGR) shares dropped more than 11% after-hours following the company’s reported preliminary financial results Q1 (full results will be released on April 27, 2022). From the previous $225-$240million, it has lowered its Q1 revenue estimate by $202-$212,000,000. Current Street estimates are at $25.1 million.

The company’s CHP business performance was negatively impacted by the decline in the U.S. consumer WiFi market in Q1.

While SMB revenue performance met expectations, COVID-induced lockdowns in Shenzhen caused supply severe disruptions in the supply of components to the company’s factories in March, resulting in a meaningful lost opportunity to deliver higher SMB revenue.

By Davit Kirakosyan