Time New York: Tue 22 May 10:03 am  |  Save 15% on H&R Block Online


ADTRAN (ADTN) Beats Earnings & Revenue Estimates in Q1


Communication network solution provider ADTRAN Inc. ADTN reported first-quarter 2017 results, wherein both the top line and the bottom line surpassed the Zacks Consensus Estimate.

The company’s earnings (including stock-based compensation expenses) came in at 15 cents per share, beating the Zacks Consensus Estimate of 13 cents. Total revenue of $170.3 million was up 19.76% year over year. The top line also beat the consensus mark of $168 million.

Quarterly gross margin came in at 43.3%, compared with 46.27% in the prior-year quarter. Operating income in the reported quarter totaled $7.03 million as against $5.52 million in the last-year quarter.

At the end of the first quarter of 2017, ADTRAN generated $9.04 million of cash from operations, compared with $15.68 million in the year-ago period. ADTRAN exited the first quarter of 2017 with cash and cash equivalents of $72.6 million, compared with $79.9 million at the end of 2016.


The company declared a cash dividend of 9 cents per share in the first quarter, which will be paid on May 18, to shareholders on record as of May 4, 2017.

Price Performance

ADTRAN underperformed the Zacks categorized Communication Infrastructure industry in the past three months. The company lost 11.74% while the industry gained 0.67% over the same period.

The outperformance in the first quarter might give the much needed boost to the stock.

Zacks Rank

ADTRAN carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader computer & technology sector include Applied Optoelectronics AAOI, Apple AAPL and Analog Devices ADI. Applied Optoelectronics and Analog Devices sport a Zacks Rank #1 (Strong Buy), while Apple carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Applied Optoelectronics, Apple and Analog Devices gained over 88%, 21% and 6%, respectively, on a year-to-date basis.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.