) is set to release its fourth-quarter fiscal 2013 results before
the opening bell on Jan 22, 2013.
In the last quarter, the company delivered a 31.82% earnings
surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
ADTRAN continues to perform creditably despite a challenging
business environment. Increased penetration of TA 5000 platform,
professional services at domestic and international levels,
mobile broadband infrastructure upgrades and funds generated
through Broadband Stimulus projects will continue to drive its
future growth prospect.
Recently, ADTRAN enhanced its technical services and support
program division. The new ProServices platform offers an
innovative ProStart installation program, ProCare maintenance
program and ProCloud managed networking services. The company
also started offering ProCloud Wi-Fi Private Label services in
Europe which we believe will not only bolster its new revenue
stream but will also lure new customers.
However, a weak macroeconomic spending environment, foreign
currency risk and stiff competition from other OEM manufacturers
may act as headwinds for the company while moving ahead.
Our proven model does not conclusively show that ADTRAN is likely
to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive
and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this
to happen. Unfortunately, this is not the case here as elaborated
Zero Zacks ESP:
This is because both the Most Accurate estimate and the Zacks
Consensus Estimate are poised at 14 cents. This leads to an ESP
of 0.00% for ADTRAN.
Zacks Rank #3 (Hold):
ADTRAN's Zacks Rank #3, decreases the predictive power of ESP.
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of 0.00% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter.
Crown Castle International Corp.
) has Earnings ESP of +6.25% and carries a Zacks Rank #2
SBA Communications Corp.
) has Earnings ESP of +150% and carries a Zacks Rank #2
) has Earnings ESP of +6.58% and carries a Zacks Rank #3
ADTRAN INC (ADTN): Free Stock Analysis Report
CROWN CASTLE (CCI): Free Stock Analysis
EQUINIX INC (EQIX): Free Stock Analysis
SBA COMM CORP (SBAC): Free Stock Analysis
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