ADTRAN, Inc. Earnings Cheat Sheet: Five Straight Quarters of Double-Digit Growth

ADTRAN, Inc. (NASDAQ:ADTN) reported its results for the third quarter. Adtran designs, manufactures, markets, and services network access solutions for communications networks.

Investing Insights: has a Stock Chart Technical Analysts Dream About.

ADTRAN Earnings Cheat Sheet for the Third Quarter

Results: Net income for ADTRAN, Inc. rose to $36.2 million (56 cents per share) vs. $32.1 million (50 cents per share) in the same quarter a year earlier. This marks a rise of 12.9% from the year earlier quarter.

Revenue: Rose 17.9% to $192.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ADTN fell in line with the mean analyst estimate of 56 cents per share. Analysts were expecting revenue of $189.4 million.

Quoting Management: ADTRAN Chief Executive Officer Tom Stanton stated, “Our Company’s strong performance in the quarter included record revenue performances by our three main product areas, Broadband Access, Internetworking and Optical Access. Our Broadband Access category grew a stellar 93% over the third quarter of 2010. Our Internetworking category also showed a strong performance by growing 44%, and our Optical Access category grew 20%. These results allowed the company to achieve its sixth consecutive all-time record revenue quarter. With nearly 80% of our revenues coming from these high growth areas, we feel the Company is well positioned for the future.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 26.2%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 33.1% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 33.1% and in the first quarter, the figure rose 88.3%.

Gross margin shrank 2.7 percentage points to 57%. The contraction appeared to be driven by increased costs, which rose 26% from the year earlier quarter while revenue rose 17.9%.

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the second quarter, it topped the mark by 3 cents, and in the first quarter, it was ahead by 6 cents.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is 53 cents per share, a drop from 54 cents. Over the past three months, the average estimate for the fiscal year has climbed from $2.14 per to share to $2.20.

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).

Investing Insights: has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)