Home security provider Arlo (NYSE:ARLO) will be announcing earnings results tomorrow after the bell. Here's what to expect.
Arlo met analysts' revenue expectations last quarter, reporting revenues of $124.2 million, up 11.9% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Is Arlo a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Arlo's revenue to grow 8.7% year on year to $125 million, a reversal from the 3.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.
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 has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 4.1% on average.
Looking at Arlo's peers in the internet of things segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Trimble's revenues decreased 12.4% year on year, meeting analysts' expectations, and AMETEK reported revenues up 5.4%, falling short of estimates by 2.6%. AMETEK traded down 11.9% following the results.
Read our full analysis of Trimble's results here and AMETEK's results here.
Investors in the internet of things segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Arlo is down 20% during the same time and is heading into earnings with an average analyst price target of $18.2 (compared to the current share price of $13.21).
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