ADTRAN Beats Analyst Estimates on EPS
ADTRAN (NAS: ADTN) reported earnings on Jan. 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ADTRAN met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and earnings per share dropped.
Margins dropped across the board.
ADTRAN booked revenue of $175 million. The 19 analysts polled by S&P Capital IQ anticipated revenue of $175 million. Sales were 6.0% higher than the prior-year quarter's $165 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.48. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.46 per share. GAAP EPS of $0.48 for Q4 were 12% lower than the prior-year quarter's $0.55 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 56.6%, 200 basis points worse than the prior-year quarter. Operating margin was 23.5%, 360 basis points worse than the prior-year quarter. Net margin was 17.8%, 400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $177 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $805 million. The average EPS estimate is $2.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 166 members out of 185 rating the stock outperform, and 19 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give ADTRAN a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ADTRAN is outperform, with an average price target of $35.59.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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