ADTRAN Beats Q3 Earnings and Revenues - Analyst Blog


Communication network solution provider, ADTRAN Inc. ( ADTN ), reported robust third-quarter 2013 financial results on strong contributions from its Internetworking and Broadband Access product divisions. The results were supported by an improved spending atmosphere and increased strategic investment by its carrier and enterprise customers. International business generated record high revenues. ADTRAN also benefits from lower operating expenses.

In the third quarter of 2013, GAAP net income was $16.2 million or 28 cents per share compared with $9.3 million or 15 cents per share in the year-ago quarter. However, quarterly adjusted earnings per share were 29 cents, significantly above the Zacks Consensus Estimate of 22 cents. The company reported quarterly total revenue of $177.4 million, up 9.4% year over year, outpacing the Zacks Consensus Estimate of $174 million.

Quarterly gross margin was 46.5% compared with 49.7% in the prior-year quarter. However, operating income registered a steep year-over-year rise of 67.5% to $17.2 million. Quarterly operating margin was 9.7% against 6.3% 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 Nov 7 to shareholders of record as of Oct 24.

During the first nine months of 2013, ADTRAN generated $52 million of cash from operations compared with $64.8 million in the year-ago period. Free cash flow, in the reported period, was $45.5 million compared with $54 million in the prior-year quarter. At the end of the third quarter of 2013, cash and marketable securities were $191 million compared with $228.9 million at the end of 2012. Total debt, at the end of the reported quarter, was $46 million, remaining flat with the figure reported at the end of 2012.

Other Stocks to Consider

ADTRAN currently has a Zacks Rank #3 (Hold). Other stocks in this industry that warrant a look includes Harmonic Inc. ( HLIT ), AudioCodes Ltd. ( AUDC ) and Envivio Inc. ( ENVI ). All these stocks currently carry a Zacks Rank #2 (Buy).

ADTRAN INC (ADTN): Free Stock Analysis Report

AUDIOCODES LTD (AUDC): Free Stock Analysis Report

ENVIVIO INC (ENVI): Free Stock Analysis Report

HARMONIC INC (HLIT): 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 , AUDC , ENVI , HLIT

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