Arlo Technologies stock drops more than 20% on poor outlook
Arlo Technologies Inc. shares dropped in the extended session Tuesday after the home-security camera maker's outlook fell well short of Wall Street estimates. Arlo shares dropped 23% in the extended session, following a 5.6% gain to close the regular session at $7.57. Arlo forecast revenue of $48 million to $52 million for the first quarter, and $380 million to $420 million for the year. Analysts surveyed by FactSet had forecast revenue of $126.5 million for the first quarter and $606.5 million for the year. In a statement, Arlo Chief Executive Matthew McRae said "we saw the market growth slow significantly late in 2018 which led to channel inventory buildup and both of these factors will affect our growth expectations for 2019." The company reported a fourth-quarter loss of $32 million, or 43 cents a share, compared with a profit of $2.7 million, or 4 cents a share, in the year-ago period. The adjusted loss was 33 cents a share. Revenue rose to $129.3 million from $124.8 million in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 35 cents a share on revenue of $128.7 million. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.