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ADTRAN (ADTN) Earnings & Revenues Beat Estimates in Q3


Communication network solution provider ADTRAN Inc. ADTN reported third-quarter 2016 results, wherein both the top line and the bottom line surpassed the Zacks Consensus Estimate.

The company’s impressive performance can be attributed to robust growth in its international segment and its Services business.

Operating Results

In the reported quarter, GAAP net income came in at $12.4 million or 26 cents per share compared with $7.07 million or 14 cents in the year-ago quarter. Quarterly adjusted earnings per share of 23 cents surpassed the Zacks Consensus Estimate of 20 cents. Total revenue of $168.89 million was up 7% year over year. The top line also beat the consensus mark of $162 million.

Quarterly gross margin came in at 44.9% compared with 44.7% in the prior-year quarter. Operating income in the reported quarter totaled $10.13 million compared with $8.07 million in the last-year quarter.

At the end of the first three quarters of 2016, ADTRAN generated $27.8 million of cash from operations compared with $23.3 million in the year-ago comparable period. As of Sep 30, 2016, the company had used cash of $18.94 million compared with a cash flow of $13.16 million as of Sep 30, 2015. At the end of the first nine months of 2016, ADTRAN had $66.30 million of cash and cash equivalents compared with $83.69 million in 2015.


The company declared a cash dividend of 9 cents per share in the third quarter, which will be paid on Nov 17, to shareholders on record as of Nov 3, 2016.

ADTRAN INC Price, Consensus and EPS Surprise

ADTRAN INC Price, Consensus and EPS Surprise | ADTRAN INC Quote

Our Take

Despite competition from peers like Commscope Holdings COMM, SBA Communications Corp. SBAC, and Zayo Group Holdings Inc. ZAYO, ADTRAN is well poised for future growth and expansion. The company, which carries a Zacks Ranks #3 (Hold), has been rapidly growing its business. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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