Smart security company Arlo (NYSE: ARLO) will be reporting earnings tomorrow afternoon. Here’s what to look for.
Arlo Technologies met analysts’ revenue expectations last quarter, reporting revenues of $121.6 million, down 10% year on year. It was a mixed quarter for the company, with a miss of analysts’ EPS estimates.
Is Arlo Technologies a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Arlo Technologies’s revenue to decline 4.7% year on year to $118.4 million, a reversal from the 11.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.
Analysts covering the company have generally 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, beating revenue estimates every single time over the past two years by 2.1% on average.
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. Mirion delivered year-on-year revenue growth of 4.9%, beating analysts’ expectations by 0.6%, and Cognex reported revenues up 2.5%, topping estimates by 1.9%. Mirion traded up 1.3% following the results while Cognex was also up 2.1%.
Read our full analysis of Mirion’s results here and Cognex’s results here.
There has been positive sentiment among investors in the specialized technology segment, with share prices up 14.2% on average over the last month. Arlo Technologies is up 21.3% during the same time and is heading into earnings with an average analyst price target of $19 (compared to the current share price of $10.20).
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