Coming Soon: ADTRAN Earnings

ADTRAN (Nasdaq: ADTN  ) is expected to report Q4 earnings on Jan. 16. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict ADTRAN's revenues will wither -20.4% and EPS will shrink -82.0%.

The average estimate for revenue is $139.6 million. On the bottom line, the average EPS estimate is $0.09.

Revenue details
Last quarter, ADTRAN reported revenue of $162.1 million. GAAP reported sales were 16% lower than the prior-year quarter's $192.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.20. GAAP EPS of $0.15 for Q3 were 73% lower than the prior-year quarter's $0.56 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 49.3%, 770 basis points worse than the prior-year quarter. Operating margin was 6.3%, 2,030 basis points worse than the prior-year quarter. Net margin was 5.7%, 1,310 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $620.6 million. The average EPS estimate is $0.87.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 161 members out of 187 rating the stock outperform, and 26 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give ADTRAN a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ADTRAN is hold, with an average price target of $19.73.

Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does ADTRAN fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2191086, ~/Articles/ArticleHandler.aspx, 4/20/2014 5:18:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement