Netgear Q4 Sales Outlook Below Street View

(RTTNews) - California-based internet and wireless communication company, NETGEAR, Inc. (NTGR) has provided a weak outlook for sales after reporting a lower profit in the third quarter. The company expects fourth-quarter sales between $250 million and $265 million. On average, four analysts polled by Thomson Reuters expect revenues of $294.96 for the fourth quarter. The company said sales will be impacted by the reduced leverage from its topline compound coupled with a rapid increase in freight costs. The company expects the operating margin for the fourth quarter to be in the range of (0.5)% to 0.5%, which, after adjustments, stand at 2.0% to 3.0%. Bryan Murray, Chief Financial Officer of the company said, "We are also seeing logistics costs rapidly increasing with ocean freight costs currently standing at eight times normal historical rates. In the third quarter, we worked with our retail channel partners to optimize their inventory levels. With the U.S. consumer WiFi market growth coming in below our prior expectations, these activities will continue into Q4. Additionally, we expect lower service provider revenue, which will be impacted by supply availability. All of this is expected to result in a sequential decline in revenue for the CHP business."