Arlo Technologies Q3 revenue edges past estimates on growth in services business

Reuters11-07
Arlo Technologies Q3 revenue edges past estimates on growth in services business

Overview

  • Arlo Q3 revenue slightly beats analyst expectations

  • The maker of smart security cameras posts adjusted EPS that surpasses analyst estimates

  • Record subscriptions and services revenue grows 29.2% yr/yr

Outlook

  • Company projects Q4 2025 revenue between $131 mln and $141 mln

  • Arlo expects Q4 2025 GAAP EPS between $0.00 and $0.06

  • Company anticipates Q4 2025 non-GAAP EPS between $0.13 and $0.19

Result Drivers

  • SERVICES BUSINESS - CEO attributes strong Q3 performance to growth in services business, with ARR up 33.8% yr/yr

  • PRODUCT LAUNCHES - Co highlights comprehensive launch of refreshed product portfolio as a driver for future growth

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$139.53 mln

$138.56 mln (4 Analysts)

Q3 Adjusted EPS

Beat

$0.16

$0.15 (4 Analysts)

Q3 Gross Margin

40.50%

Q3 Adjusted Gross Margin

41.40%

Q3 ARR

$323 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the computer & electronics retailers peer group is "buy"

  • Wall Street's median 12-month price target for Arlo Technologies Inc is $22.00, about 19.5% above its November 5 closing price of $17.71

  • The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw5bytJpa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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