3 Stocks Drifting Lowers as Earnings Reports are Analyzed

ADTRAN Inc. (NASDAQ:ADTN) reported its results for the fourth quarter. Net income for ADTRAN Inc. fell to $31.2 million (48 cents per share) vs. $36 million (56 cents per share) a year earlier. This is a decline of 13.3% from the year earlier quarter. Revenue rose 6% to $175.3 million from the year earlier quarter. ADTN beat the mean analyst estimate of 46 cents per share. Analysts were expecting revenue of $174.7 million.

ADTRAN Chief Executive Officer Tom Stanton stated, “Our Company had a solid fourth quarter which contributed to a record year in 2011. Our performance continued to be driven by our core product areas which include Broadband Access, Internetworking and Optical Access. Combined these areas grew 32% for the quarter compared to the same period in 2010. Growth was led by Broadband Access which grew 49% and Internetworking which grew 37% for the quarter. We believe that our strategic areas of focus are well aligned with global market trends and will provide our company long term growth.”

Competitors to Watch: Calix, Inc. (NYSE:CALX), Cisco Systems, Inc. (NASDAQ:CSCO), Tellabs, Inc. (NASDAQ:TLAB), Alcatel-Lucent (NYSE:ALU), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Sycamore Networks, Inc. (NASDAQ:SCMR), Juniper Networks, Inc. (NYSE:JNPR), Ciena Corporation (NASDAQ:CIEN), Extreme Networks, Inc (NASDAQ:EXTR), and Westell Technologies Inc. (NASDAQ:WSTL).

Fastenal Company (NASDAQ:FAST) reported higher profit for the fourth quarter as revenue showed growth. Net income for the general building materials company rose to $87.5 million (30 cents per share) vs. $65.2 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 34.2% from the year earlier quarter. Revenue rose 21.6% to $697.8 million from the year earlier quarter. FAST beat the mean analyst estimate of 29 cents per share. Analysts were expecting revenue of $695.6 million.

Competitors to Watch: Interline Brands, Inc. (NYSE:IBI), General Electric (NYSE:GE), Lawson Products, Inc. (NASDAQ:LAWS), W.W. Grainger, Inc. (NYSE:GWW), Caterpillar Inc. (NYSE:CAT), 3M Company (NYSE:MMM), and Honeywell International Inc. (NYSE:HON).

Linear Technology Corporation (NASDAQ:LLTC) posted a decrease in profit as revenue declined. Net income for the semiconductor company fell to $87.9 million (38 cents per share) vs. $143.7 million (62 cents per share) a year earlier. This is a decline of 38.9% from the year earlier quarter. Revenue fell 23.3% to $294.3 million from the year earlier quarter. LLTC reported adjusted net income of 45 cents per share. By that measure, the company beat the mean estimate of 39 cents per share. Analysts were expecting revenue of $293.1 million.

According to Lothar Maier, CEO, “This was an encouraging quarter in a difficult global economic environment. We met the mid point of our guidance and we believe that we are at an inflection point in our business. Bookings, which started slowly, strengthened in December and continued strengthening in January. In these challenging times we maintained strong profitability, reporting operating margins at 45% of sales. Given the improvement in our bookings and our current outlook for the March quarter, we are estimating that we will grow quarterly revenues sequentially in the 4% to 8% range for our fiscal third quarter. As we announced earlier, we have acquired Dust Networks, a leading provider of wireless sensor networks.”

Competitors to Watch: Texas Instruments Inc. (NYSE:TXN), Analog Devices, Inc. (NYSE:ADI), National Semicond. Corp. (NYSE:NSM), Maxim Integrated Products Inc. (NASDAQ:MXIM), Intersil Corporation (NASDAQ:ISIL), Micrel, Incorporated (NASDAQ:MCRL), Advanced Analogic Tech. Incorp. (NASDAQ:AATI), ON Semiconductor Corp. (NASDAQ:ONNN), Semtech Corporation (NASDAQ:SMTC), and Microchip Technology Inc. (NASDAQ:MCHP).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com