On Feb 17, 2014, we issued an updated research report on
). The company improved its year-over-year performance on strong
contributions from its Internetworking and Broadband Access
The results were supported by an improved spending atmosphere
and increased strategic investment by its carrier and enterprise
customers. Also, the company's international business generated
record high revenues.
ADTRAN has delivered positive earnings surprise in all four
quarters last year, with an average beat of 44.21%. The company
reported mixed financial results for the fourth quarter of fiscal
2013 with the bottom line beating the Zacks Consensus Estimate
but the top line missing the same.
Meanwhile, the company continues to perform well owing to strong
contributions from the U.S., Europe, the Middle East and Africa
and Latin America regions. ADTRAN has stabilized its businesses
with the Tier 1 carriers and has also won contracts from Tier 2
and Tier 3 carriers. We expect the company to benefit from market
share gain, strong growth of core products, solid international
sales and growing service revenues.
However, global macroeconomic fluctuations, foreign currency risk
and stiff competition may act as headwinds for ADTRAN moving
ahead. Moreover, the stock price has soared more than 43.6% in
the last one year and is currently trading at the high-end of its
52-week price range.
ADTRAN currently carries a Zacks Rank #2 (Buy).
Stocks That Warrant a Look
Other stocks worth considering in this sector include
Telecity Group plc (
Crown Castle International Corp.
CommScope Holding Company, Inc.
). Crown Castle has a Zacks Rank #1 (Strong Buy), while CommScope
and Telecity Group carry a Zacks Rank #2.
ADTRAN INC (ADTN): Free Stock Analysis Report
CROWN CASTLE (CCI): Free Stock Analysis
COMMSCOPE HLDG (COMM): Free Stock Analysis
TELECITY GP-ADR (TLEIY): Get Free Report
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