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ARLO Queues Up to Report Q1 Earnings: What's in the Offing?

Arlo Technologies ARLO is set to report first-quarter 2021 results on May 5.

The company expects first-quarter 2021 revenues between $70 and $80 million. Adjusted loss is expected between 17 cents and 23 cents per share.

For the quarter, the Zacks Consensus Estimate for revenues currently stands at $77.3 million, suggesting 18.1% growth from the figure reported in the year-ago quarter.

Moreover, the consensus mark for first-quarter loss stayed at 21 cents per share over the past 30 days, indicating an improvement from loss of 34 cents in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 36.4%.

Arlo Technologies, Inc. Price and EPS Surprise

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

Arlo’s seasonally slow first quarter is expected to have benefited from a growing subscriber base, driven by its new business model and expanding portfolio. This home security and IoT solution provider added a record 79,000 paid accounts in the fourth quarter, reflecting year-over-year growth of 89.1%.

Markedly, in first quarter, Arlo announced the availability of its all-new Essential Indoor Camera that features an easy-to-control, automated privacy shield.

Moreover, higher mix toward services and subscriptions is expected to have benefited margins in the to-be-reported quarter.

What Our Model Says

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.

Arlo Technologies 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.

Stocks to Consider

Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

CDW Corporation CDW has an Earnings ESP of +0.51% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fair Isaac FICO has an Earnings ESP of +15.94% and is #2 Ranked.

Waters Corporation WAT has an Earnings ESP of +2.94% and a Zacks Rank #2.

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Waters Corporation (WAT): Free Stock Analysis Report
 
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