Networking and communication equipment manufacturer,
) shares plummeted after the company declared that the volatility
in the macroeconomic condition of Europe is hurting its
ADTRAN's shares fell $1.74 or almost 7% as the stock closed at
$23.47 on Wednesday on Nasdaq. The shares were one of the 10
worst performing stocks on Nasdaq on Wednesday in relative
On Jul 9, 2013, ADTRAN reported better-than-expected
second-quarter 2013 financial results, beating the Zacks
Consensus Estimate in both the fronts. Strong contributions from
the Internetworking and Broadband Access product divisions
contributed to the improved results.
Although quarterly total revenue of $162.2 million declined
11.8% annually, ADTRAN outpaced the Zacks Consensus Estimate of
$153.0 million. Similarly, the adjusted earnings per share of 18
cents handsomely beat the Zacks Consensus Estimate of 15 cents.
However, a 47.6% decline in operating profit was the most notable
of the different financial measures.
Huntsville, Ala.-based ADTRAN expects its overall
profitability to decline in the third quarter of 2013.
Nevertheless, the company presumes that significant carrier
network upgrades and a tight cost control effort will allow it to
improve its profitability in the fourth quarter of 2013.
Improved carrier spending along with geographic expansion of
business could boost ADTRAN's top line in the coming quarters,
which in turn can improve its profitability. Thus, we believe
that although the stock has risen more than 21% since the
beginning of the year, there is scope for further
ADTRAN currently has a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other stocks in this industry that warrant a look include
Crown Castle International Corp.
). All the stocks currently carry a Zacks Rank #2 (Buy).
ADTRAN INC (ADTN): Free Stock Analysis Report
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