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Arlo Technologies (ARLO) to Report Q4 Earnings: What to Expect?

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Arlo Technologies ARLO is set to report fourth-quarter 2021 results on Mar 1.

The company expects fourth-quarter 2021 revenues between $130 and $140 million. Adjusted loss per share is expected to be below 7 cents.

For the quarter, the Zacks Consensus Estimate for revenues currently stands at $135.74 million, suggesting 18.20% growth from the figure reported in the year-ago quarter.

Moreover, the consensus mark for fourth-quarter loss stayed at 3 cents per share over the past 30 days, indicating an improvement from a loss of 8 cents in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 64.37%.

Arlo Technologies, Inc. Price and EPS Surprise

Arlo Technologies, Inc. Price and EPS Surprise
Arlo Technologies, Inc. Price and EPS Surprise

Arlo Technologies, Inc. price-eps-surprise | Arlo Technologies, Inc. Quote

Factors to Note

Arlo is expected to have benefited in the fourth quarter from a growing subscriber base, driven by its new business model and an expanding portfolio. In the to-be-reported quarter, Arlo surpassed the mark of one million paid subscription accounts, which nearly doubled since March 2021.

Arlo’s expanding portfolio of products and services has been a key catalyst. In the fourth quarter, the company is expected to benefit from its new Arlo Secure Services plans.

Arlo’s expanding partner base has been another key catalyst. In the to-be-reported quarter, Arlo is expected to have benefited from the strategic partnership with Calix CALX.

Calix is expected to have improved Arlo’s products and services' distribution by offering the services of Arlo to homes and businesses across North America.

Arlo is expected to have benefited from the launch of its new product, Arlo Go2 Smart Security Camera, in collaboration with Verizon Communications VZ.

Arlo Go is exclusively available in Verizon stores nationwide, and the latter’s reach across the nation is expected to have helped Arlo tap into new customer bases.

Nonetheless, increasing airfreight expenses due to supply chain constraints have limited margin expansion in the fourth quarter.

What Our Model Unveils

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.

Arlo has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

A Stock to Consider

Here is a stock from the investors can consider, as our model shows that it has the right combination of elements to beat on earnings in its upcoming release:

Ambarella AMBA has an Earnings ESP of +2.86% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. The company is scheduled to release fourth-quarter 2022 results on Feb 28.

Ambarella’s shares have returned 13.3% in the past year compared with the Zacks Electronics-Semiconductors industry’s growth of 12.7% and the Zacks Computer and Technology Sector witnessed a rise of 1.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Verizon Communications Inc. (VZ) : Free Stock Analysis Report

Calix, Inc (CALX) : Free Stock Analysis Report

Ambarella, Inc. (AMBA) : Free Stock Analysis Report

Arlo Technologies, Inc. (ARLO) : Free Stock Analysis Report

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