Smart security company Arlo (NYSE: ARLO) will be reporting earnings this Thursday after market close. Here’s what investors should know.
Arlo Technologies beat analysts’ revenue expectations last quarter, reporting revenues of $141.3 million, up 16.2% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EPS guidance for next quarter estimates.
Is Arlo Technologies a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Arlo Technologies’s revenue to grow 17.4% year on year, a reversal from the 4.1% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arlo Technologies has a history of exceeding Wall Street’s expectations.
Looking at Arlo Technologies’s peers in the specialized technology segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Napco delivered year-on-year revenue growth of 11.8%, meeting analysts’ expectations, and Mirion reported revenues up 27.5%, topping estimates by 5.2%. Napco traded down 10.5% following the results while Mirion’s stock price was unchanged.
Read our full analysis of Napco’s results here and Mirion’s results here.
There has been positive sentiment among investors in the specialized technology segment, with share prices up 11% on average over the last month. Arlo Technologies is up 6.1% during the same time and is heading into earnings with an average analyst price target of $21.50 (compared to the current share price of $14.72).
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