We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ADTRAN (ADTN) Q2 Earnings Beat Estimates, Revenues Down Y/Y
Read MoreHide Full Article
ADTRAN, Inc. (ADTN - Free Report) reported lackluster second-quarter 2020 results, with the bottom and the top line deteriorating on a year-over-year basis. Apart from COVID-19 uncertainties, top-line contraction and lower revenues from Network Solutions segment negatively impacted the quarterly performance.
Bottom Line
On a GAAP basis, net income for the June quarter was $0.8 million or 2 cents per share compared with $4 million or 8 cents per share in the year-ago quarter. The year-over-year deterioration was primarily caused by top-line contraction.
Quarterly non-GAAP net income came in at $1.6 million or 4 cents per share compared with $5.9 million or 12 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 3 cents.
Quarterly revenues amounted to $128.7 million compared with $156.4 million in the year-earlier quarter and surpassed the consensus estimate of $128 million. The decline was caused by lower sales in the Network Solutions segment, which fell 20% year over year to $111.3 million due to the COVID-19 pandemic. Meanwhile, sales from Services & Support segment were $17.4 million, up 1% from $17.2 million in the year-ago quarter.
Other Details
Total cost of sales declined from $91.4 million to $75.2 million. Gross profit came in at $53.5 million compared with $65 million in the prior-year quarter. Operating loss for the second quarter was $6 million against an operating income of $0.6 million in the year-ago quarter.
Notably, the company communicated that its board of directors announced a quarterly cash dividend payout of 9 cents per share to shareholders on record as of Aug 20, payable on Sep 3.
Cash Flow & Liquidity
During the first six months of 2020, ADTRAN generated $1.7 million of net cash from operating activities compared with $11 million in the year-ago quarter. As of Jun 30, the networking equipment maker had $69.1 million in cash and equivalents with $7.6 million of other non-current liabilities.
Going Forward
Despite challenging macroeconomic conditions associated with the COVID-19 pandemic, ADTRAN emerged as a strong player and witnessed robust demand in emerging service provider markets. Notably, the company continues to optimize its customer, geographic and product diversity momentum as communications service providers scale up their network capabilities. The company added 33 new customers during the quarter and has been selected by numerous Tier 1 operators for its diversified portfolio of software-defined access, fiber extension, 10G PON solutions and Mosaic Cloud Platform. With robust growth in the Asia-Pacific region, ADTRAN also witnessed solid revenues from Tier 2 and Tier 3 service providers in the United States. Moreover, its strategy of diversification across the globe along with technological advancements instills optimism.
Calix’s bottom line surpassed the Zacks Consensus Estimate in the last four quarters. The company has a trailing four-quarter earnings surprise of 59.7%, on average.
Turtle Beach’s bottom line surpassed the Zacks Consensus Estimate in the last four quarters. The company has a trailing four-quarter earnings surprise of 46.4%, on average.
Cogent’s bottom line surpassed the Zacks Consensus Estimate twice in the last four quarters. The company has a trailing four-quarter earnings surprise of 12.3%, on average.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
ADTRAN (ADTN) Q2 Earnings Beat Estimates, Revenues Down Y/Y
ADTRAN, Inc. (ADTN - Free Report) reported lackluster second-quarter 2020 results, with the bottom and the top line deteriorating on a year-over-year basis. Apart from COVID-19 uncertainties, top-line contraction and lower revenues from Network Solutions segment negatively impacted the quarterly performance.
Bottom Line
On a GAAP basis, net income for the June quarter was $0.8 million or 2 cents per share compared with $4 million or 8 cents per share in the year-ago quarter. The year-over-year deterioration was primarily caused by top-line contraction.
Quarterly non-GAAP net income came in at $1.6 million or 4 cents per share compared with $5.9 million or 12 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 3 cents.
ADTRAN, Inc. Price, Consensus and EPS Surprise
ADTRAN, Inc. price-consensus-eps-surprise-chart | ADTRAN, Inc. Quote
Revenues
Quarterly revenues amounted to $128.7 million compared with $156.4 million in the year-earlier quarter and surpassed the consensus estimate of $128 million. The decline was caused by lower sales in the Network Solutions segment, which fell 20% year over year to $111.3 million due to the COVID-19 pandemic. Meanwhile, sales from Services & Support segment were $17.4 million, up 1% from $17.2 million in the year-ago quarter.
Other Details
Total cost of sales declined from $91.4 million to $75.2 million. Gross profit came in at $53.5 million compared with $65 million in the prior-year quarter. Operating loss for the second quarter was $6 million against an operating income of $0.6 million in the year-ago quarter.
Notably, the company communicated that its board of directors announced a quarterly cash dividend payout of 9 cents per share to shareholders on record as of Aug 20, payable on Sep 3.
Cash Flow & Liquidity
During the first six months of 2020, ADTRAN generated $1.7 million of net cash from operating activities compared with $11 million in the year-ago quarter. As of Jun 30, the networking equipment maker had $69.1 million in cash and equivalents with $7.6 million of other non-current liabilities.
Going Forward
Despite challenging macroeconomic conditions associated with the COVID-19 pandemic, ADTRAN emerged as a strong player and witnessed robust demand in emerging service provider markets. Notably, the company continues to optimize its customer, geographic and product diversity momentum as communications service providers scale up their network capabilities. The company added 33 new customers during the quarter and has been selected by numerous Tier 1 operators for its diversified portfolio of software-defined access, fiber extension, 10G PON solutions and Mosaic Cloud Platform. With robust growth in the Asia-Pacific region, ADTRAN also witnessed solid revenues from Tier 2 and Tier 3 service providers in the United States. Moreover, its strategy of diversification across the globe along with technological advancements instills optimism.
Zacks Rank & Stocks to Consider
ADTRAN currently has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader industry are Calix, Inc. (CALX - Free Report) , Turtle Beach Corporation (HEAR - Free Report) and Cogent Communications Holdings, Inc. (CCOI - Free Report) . While Calix sports a Zacks Rank #1 (Strong Buy), Turtle Beach and Cogent carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calix’s bottom line surpassed the Zacks Consensus Estimate in the last four quarters. The company has a trailing four-quarter earnings surprise of 59.7%, on average.
Turtle Beach’s bottom line surpassed the Zacks Consensus Estimate in the last four quarters. The company has a trailing four-quarter earnings surprise of 46.4%, on average.
Cogent’s bottom line surpassed the Zacks Consensus Estimate twice in the last four quarters. The company has a trailing four-quarter earnings surprise of 12.3%, on average.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>