ADTRAN Beats 2Q Earnings and Rev. - Analyst Blog


Communication network solution provider ADTRAN Inc. ( ADTN ) reported strong second-quarter 2013 financial results, owing to strong contributions from its Internetworking and Broadband Access product divisions. The results were positively impacted by an improved spending atmosphere and increased strategic investment by its carrier customers. ADTRAN currently has a Zacks Rank #1 (Strong Buy).

In the second quarter of 2013, GAAP net income was $9.9 million or 17 cents per share compared with $21.1 million or 33 cents per share in the year-ago quarter. However, quarterly adjusted earnings per share were 18 cents, well above the Zacks Consensus Estimate of 15 cents per share. The company reported quarterly total revenue of $162.2 million, down 11.8% year over year but outpaced the Zacks Consensus Estimate of $153 million.

Quarterly gross margin was 49.2% compared with 51.7% in the prior-year quarter. Operating income registered a steep drop of 47.6% year over year to $14.1 million. Quarterly operating margin was 8.7% compared with 14.6% in the prior-year quarter. The company's board of directors declared a cash dividend of 9 cents per share for the quarter. The dividend will be paid on Aug 8 to shareholders of record as of Jul 25.

During the first half of 2013, ADTRAN generated $29.4 million of cash from operations compared with $37 million in the year-ago period. Free cash flow, in the reported period, was $25.8 million compared with $29.2 million in the prior-year period. At the end of the second quarter of 2013, cash and marketable securities were $190.1 million compared with $228.9 million at the end of 2012. Total debt, at the end of the reported quarter, was $46 million, remaining same to the end of 2012.  

Other Stocks to Consider

Other stocks in this industry that warrant a look includes Calix Inc. ( CALX ), Crown Castle International Corp. ( CCI ) and Equinix Inc. ( EQIX ). While Calix currently carries a Zacks Rank #1 (Strong Buy), both Crown Castle and Equinix have a Zacks Rank #2 (Buy).

ADTRAN INC (ADTN): Free Stock Analysis Report

CALIX INC (CALX): Free Stock Analysis Report

CROWN CASTLE (CCI): Free Stock Analysis Report

EQUINIX INC (EQIX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: ADTN , CALX , CCI , EQIX

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