Please ensure Javascript is enabled for purposes of website accessibility

Can ADTRAN Beat These Numbers?

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

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

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.