Telecom exchange traded funds (ETFs) may see trading action Friday following mixed quarterly results from Netgear (NasdaqGS: NTGR) and Oclaro (NasdaqGS: OCLR).
Netgear shares were set to rise Friday after the wireless company said its first-quarter profit jumped more than 50%. Revenue came in higher than analysts had estimated. The company guided meaningfully ahead of Wall Street and “saw growth across product lines and end-user categories,” Deutsche Bank said.
“Netgear defied trends seen in other consumer electronics names with solid consumer growth. The company is benefitting from growth in data consumption,” according to Deutsche Bank. “While PC units were apparently weak this has not affected sales of Netgear’s products because they tap into demand for home networking and home media storage. These areas remain strong as consumers search for new ways to consume digital media.”
Separately, Oclaro after Thursday’s closing bell said it swung to a quarterly loss.
The two stocks are components of SPDR S&P Telecom ETF (NYSEArca: XTL).
Other holdings Sprint (NYSE: S) and Motorola Solutions (NYSE: MSI) reported quarterly results Thursday.
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