NETGEAR Boosts Gaming Experience With XR1000 WiFi 6 Router
NETGEAR, Inc. NTGR recently launched Nighthawk Pro Gaming XR1000 WiFi 6 AX5400 router, extending its Nighthawk Pro Gaming portfolio. The avant-garde router, which is equipped with industry-leading networking hardware, is apparently considered to be the perfect solution for millennial generation of gaming enthusiasts with an uninterrupted WiFi 6 experience. Markedly, the newly launched device reduces network jitters with utmost flexibility and boosts cloud gaming and streaming experience for gamers with breakthrough software solution — DumaOS 3.0.
The DumaOS 3.0 is a gaming operating system, which forms the crux of this advanced router. The XR1000 device is loaded with advanced features like ping heatmap, geo-fencing and bandwidth allocation. With a proven technology, the gaming software provides an engaging experience and securely enables customers to stream with NETGEAR Armor. The WiFi 6 superfast technology coupled with a 1.5GHz triple-core processor offers low-latency connection and accelerates the performance by 40% compared with available products in the market. With 4X enhanced capacity, it is apparently the world’s first WiFi 6 gaming router, equipped with four detachable antennas for faster speeds and better WiFi coverage.
The 1.5GHz triple-core processor supports 4K streaming and surfing while improving wired, wireless and USB performance. Interestingly, it also allows multiple devices to connect simultaneously by efficiently scheduling data without compromising on speed and reliability. Given the propensity of gamers to migrate from traditional to online platforms, the latest launch is considered to be a significant step toward managing the proliferating demand for robust Wi-Fi connectivity. Currently, this solution is commercially available on NETGEAR.com with a price tag of $349.99.
Moving forward, NETGEAR intends to remain quite proactive with its broad line-up of switching solutions. These solutions cater to a wide range of customers related to education, hospitality and retail sectors. Markedly, its top line is benefiting from rapid surge in demand for Internet devices and robust networking solutions. Higher market demand for Smart Home and connected products such as Smart TVs, HD streaming players and security cameras, among others, continues to drive innovation in the networking space.
Holding nearly 49% market share in U.S. retail WiFi products, which include mesh, routers, gateways and extenders, the San Jose, CA-based networking company is gaining from the healthy market traction of Orbi, cable modems and gateways coupled with its SMB switching portfolio, particularly the PoE and ProAV switches. It continues to capitalize on technology inflections, create new categories and build recurring revenues to maintain its market position and drive growth. The latest addition to the PoE switches portfolio is likely to strengthen its market position and augment revenues in the near term.
However, as the company functions in a rapidly evolving and fiercely competitive environment, it expects competition to intensify on price. Moreover, it depends on a limited number of third-party manufacturers for substantially all of its manufacturing needs, primarily based in low-cost countries like China and Vietnam. With potential trade restrictions on China, NETGEAR is likely to lose its cost advantage, and products can become pricier. It also experiences increased sales in the third and fourth fiscal quarters, primarily due to seasonal demand from consumer markets. This leads to volatility in cash flow and reduces the predictability of earnings.
Shares of NETGEAR have lost 3.9% compared with the industry’s decline of 19.3% in the past year. The company topped earnings estimates in each of the last four quarters. The company delivered a trailing four-quarter positive earnings surprise of 43.8%, on average.
NETGEAR currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industry are Digi International Inc. DGII, Extreme Networks, Inc. EXTR and RADCOM Ltd. RDCM, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Digi International pulled off a trailing four-quarter positive earnings surprise of 564.3%, on average.
Extreme Networks delivered a trailing four-quarter positive earnings surprise of 223.2%, on average.
RADCOM delivered a trailing four-quarter positive earnings surprise of 21.9%, on average.
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