ADTRAN Earnings: Despite Topping Estimates, Stock Hit By Declines

ADTRAN Inc. (NASDAQ:ADTN) saw its quarterly profit dip along with a top-line double-digit percentage drop. The company managed to edge out a gain against analyst estimates though. The year-over-year percentage declines are weighing on ADTRAN’s stock today. Shares are down 3.24%.

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ADTRAN Inc. Earnings Cheat Sheet

Results: Net income decreased -87.29% to $3.961 million (11 cents per diluted share) in the quarter versus a net gain of $31.16 million in the year-earlier quarter.

Revenue: Decreased 20.25% to $139.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ADTRAN Inc. reported adjusted net income of 11 cents per share. By that measure, the company beat the mean analyst estimate of $0.06. It beat the average revenue estimate of $139.79 million.

Quoting Management: “Our fourth quarter results came in largely as expected with both our carrier and enterprise divisions performing to forecast. Our focus remains on capitalizing on the significant network upgrades that lie ahead of us while maintaining tight cost control as we navigate through the current environment,” ADTRAN CEO Tom Stanton stated.

Key Stats:

Revenue decreased 13.77% from $162.13 million in the previous quarter. Net income decreased 57.27% from $9.27 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.11 and has not changed. For the current year, the average estimate has moved down from a profit of $0.75 to a profit of $0.73 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)