President-elect Donald J. Trump is no stranger to disseminating a tough law-and-order message. Indeed, the blistering run of publicly traded private prisons CoreCivic (CXW) and Geo Group (GEO) is a testament to the market’s anticipation of a radical new paradigm shift in American politics. But within this ecosystem are winners and losers and Arlo Technologies (ARLO) might fall under the latter category.
To be clear, I’m not casting aspersions on the cloud infrastructure and smart home experience provider. As Barchart contributor StockStory pointed out recently, management disclosed better-than-expected revenue during the company’s third quarter, with sales popping 5.9% year-over-year to $137.7 million. That’s the good news. Unfortunately, revenue guidance of $121 million fell well shy of expectations to the tune of 12.9% below analysts’ estimates.
