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Can ADTRAN Beat These Numbers?

By Seth Jayson - Updated Apr 10, 2017 at 1:55PM

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Checking expectations

ADTRAN (Nasdaq: ADTN) is expected to report Q1 earnings on April 10. 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 grow 4.1% and EPS will compress -56.0%.

The average estimate for revenue is $140.2 million. On the bottom line, the average EPS estimate is $0.11.

Revenue details
Last quarter, ADTRAN reported revenue of $139.8 million. GAAP reported sales were 20% lower than the prior-year quarter's $175.3 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 $0.11. GAAP EPS of $0.06 for Q4 were 88% lower than the prior-year quarter's $0.49 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 48.2%, 840 basis points worse than the prior-year quarter. Operating margin was 2.1%, much worse than the prior-year quarter. Net margin was 2.8%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $619.2 million. The average EPS estimate is $0.76.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 156 members out of 182 rating the stock outperform, and 26 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 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 hold, with an average price target of $15.94.

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Stocks Mentioned

ADTRAN, Inc. Stock Quote
ADTRAN, Inc.
ADTN
$17.99 (0.28%) $0.05

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