The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ADTRAN met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted significantly.
Margins shrank across the board.
ADTRAN reported revenue of $162.1 million. The 10 analysts polled by S&P Capital IQ expected revenue of $162.1 million on the same basis. 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 came in at $0.20. The six earnings estimates compiled by S&P Capital IQ averaged $0.18 per share. 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.
For the 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.
Next quarter's average estimate for revenue is $143.4 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $641.0 million. The average EPS estimate is $0.91.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 162 members out of 190 rating the stock outperform, and 28 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give ADTRAN a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ADTRAN is underperform, with an average price target of $19.73.
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