The 10-second takeaway
For the quarter ended March 31 (Q1), ADTRAN beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
ADTRAN logged revenue of $143.0 million. The 13 analysts polled by S&P Capital IQ looked for sales of $140.2 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $134.7 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 $0.17. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.12 per share. Non-GAAP EPS of $0.17 for Q1 were 32% lower than the prior-year quarter's $0.25 per share. GAAP EPS of $0.13 for Q1 were 35% lower than the prior-year quarter's $0.20 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 48.7%, 630 basis points worse than the prior-year quarter. Operating margin was 4.6%, 740 basis points worse than the prior-year quarter. Net margin was 5.5%, 410 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $155.8 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $619.2 million. The average EPS estimate is $0.76.
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 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 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 $18.52.
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