How Netgear's Revenue Revision Will Affect Broadcom, Qualcomm And Others

• Today, Netgear Inc (NASDAQ:NTGR) slashed its 1Q revenue outlook by 11% to $207 million at the midpoint from $232 million prior.
• The revision reflected, "The U.S. consumer WiFi market, which had exited 2021 at ~15% above 2019 levels, declined in the first quarter of 2022, ending roughly flat to 2019 levels. 
• The decline in market size negatively impacted the performance of its CHP business which saw a decline in revenue relative to our expectations earlier in the quarter. 
• Despite SMB's revenue performance meeting expectations, Shenzhen's Covid lockdown severely disrupted the supply of components to its factories in March. 
• KeyBanc saw the preannouncement most negatively impact Broadcom Inc (NASDAQ:AVGO), Qualcomm Inc (NASDAQ:QCOM), Qorvo Inc (NASDAQ:QRVO), and Skyworks Solutions Inc (NASDAQ:SWKS), which supply WiFi and RF chips to NTGR.
• The update also carried negative implications for Silicon Laboratories Inc (NASDAQ:SLAB) and Synaptics Inc (NASDAQ:SYNA), which negatively impact meaningful exposure to consumer IoT.
• Price Action: NTGR shares closed lower by 3.33% at $22.37 on the last check Tuesday.