ADTRAN Holdings Inc. ADTN reported lackluster results for the second quarter of 2024. The company’s bottom line was wider than the Zacks Consensus Estimate due to a tough macroeconomic environment. However, the top line matched estimates, supported by increased customer growth in the United States and Europe due to their latest fiber networking solutions.
Net Income
On a GAAP basis, net loss in the second quarter was $49.9 million or a loss of 63 cents per share compared with a loss of $39.1 million or a loss of 50 cents per share in the prior-year quarter. Non-GAAP net loss was $18.8 million or a loss of 24 cents per share. The loss was wider than the Zacks Consensus Estimate of 10 cents.
ADTRAN Holdings, Inc. Price, Consensus and EPS Surprise
ADTRAN Holdings, Inc. price-consensus-eps-surprise-chart | ADTRAN Holdings, Inc. Quote
Revenues
Quarterly total revenues dipped to $226 million from $327.4 million in the year-ago quarter, owing to soft demand trends across the network solutions business. The top line, however, aligned with the consensus estimate.
Revenues from Network Solutions in the reported quarter were $179.2 million compared with $283 million in the year-ago quarter. Services and Support revenues were $46.8 million, up from $44.4 million a year ago.
Other Details
Total cost of sales decreased from $234.8 million to $144.4 million. GAAP gross profit came in at $81.6 million compared with $92.6 million in the year-earlier quarter. Operating loss in the quarter was $38.3 million compared with $44.6 million reported in the year-ago quarter.
Non-GAAP gross margin in the reported quarter was 41.9% compared with 38.6% in the prior-year quarter. Non-GAAP operating margin in the second quarter declined to 0.7% from 1.1%.
Cash Flow & Liquidity
In the first six months of 2024, ADTRAN generated $56.5 million of cash from operating activities against a cash utilization of $36.2 million in the year-ago period. As of Jun 30, 2024, the company had $111.2 million in cash and cash equivalents with $30.6 million of deferred compensation liability.
Moving Forward
For the third quarter of 2024, management expects revenues in the range of $215-235 million. Non-GAAP operating margin is expected to be in a range of -1% to +3%.
Zacks Rank
ADTRAN currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Cogent Communications Holdings, Inc. CCOI is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at a loss of $1.02 per share, indicating a decline of 684.6% from the year-ago reported figure.
Akamai Technologies, Inc. AKAM is slated to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, indicating growth of 3.4% from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.8%. AKAM delivered an average earnings surprise of 5.4% in the last four reported quarters.
CommScope Holding Company, Inc. COMM is scheduled to release second-quarter 2024 earnings on Aug 8. The Zacks Consensus Estimate for earnings is pegged at $0.06 per share, suggesting a decline of 68.42% from the year-ago reported figure.
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ADTRAN Holdings, Inc. (ADTN) : Free Stock Analysis Report
Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
CommScope Holding Company, Inc. (COMM) : Free Stock Analysis Report
Cogent Communications Holdings, Inc. (CCOI) : Free Stock Analysis Report
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