ADTRAN (Nasdaq: ADTN) reported earnings on July 10. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), ADTRAN beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Revenue details
ADTRAN chalked up revenue of $162.2 million. The 12 analysts polled by S&P Capital IQ expected to see revenue of $154.1 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $184.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.21. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.19 per share. Non-GAAP EPS of $0.21 for Q2 were 45% lower than the prior-year quarter's $0.38 per share. GAAP EPS of $0.17 for Q2 were 48% lower than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 49.2%, 250 basis points worse than the prior-year quarter. Operating margin was 8.7%, 590 basis points worse than the prior-year quarter. Net margin was 6.1%, 540 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $163.0 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $621.4 million. The average EPS estimate is $0.78.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 157 members out of 185 rating the stock outperform, and 28 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give ADTRAN a green thumbs-up, and 10 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 $19.78.
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