Author: Wallace Witkowski

: Netgear stock drops as supply-chain problems damage outlook

Netgear Inc. shares fell in the extended session Wednesday after the network equipment and router company forecast an outlook below Wall Street expectations because of supply-chain problems.

Netgear NTGR, -0.73% shares fell 8% after hours, following a 0.7% decline in the regular session to close at $31.38.

“We face a number of near-term headwinds, starting with lengthening product transit times due to numerous disruptions on the logistics front, which are impacting many industries,” said Bryan Murray, Netgear chief financial officer, in a statement. “We are also seeing logistics costs rapidly increasing with ocean freight costs currently standing at eight times normal historical rates.”

The company forecast fourth-quarter revenue of $250 million to $265 million, while analysts expect $328.6 million.

The company reported third-quarter net income of $9.6 million, or 31 cents a share, compared with $17.8 million, or 85 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 50 cents a share, compared with $1.13 a share in the year-ago period.

Revenue fell to $290.2 million from $308.8 million in the year-ago quarter.

Analysts had forecast third-quarter earnings of 42 cents a share on revenue of $295 million.

Earnings Results: KLA stock rises as earnings, outlook top Street view

KLA Corp. shares rose in the extended session Wednesday after the chip-equipment maker’s quarterly results and outlook topped Wall Street estimates.

KLA KLAC, -0.41% shares rose 3% after hours, following a 0.4% decline in the regular session to close at $340.57.

The company reported fiscal first-quarter net income of $1.07 billion, or $6.96 a share, compared with $420.6 million, or $2.69 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $4.64 a share, compared with $3.03 a share in the year-ago period.

Revenue rose to $2.08 billion from $1.54 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast $4.52 a share on revenue of $2.04 billion.

“KLA continues to outperform expectations despite significant supply-chain challenges by operating with purpose and precision and focusing on creating value for our customers, partners, and shareholders alike,” said Rick Wallace, KLA’s chief executive, in a statement.

KLA forecast earnings of $4.95 to $5.85 a share on revenue of $2.23 billion to $2.43 billion in the current quarter. Analysts had estimated $5.14 a share on revenue of $2.23 billion for the fiscal second quarter.