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Why Is Adtran (ADTN) Up 1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Adtran (ADTN - Free Report) . Shares have added about 1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Adtran due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
ADTRAN Beats Earnings & Revenue Estimates in Q4
ADTRAN reported relatively healthy fourth-quarter 2021 results, wherein both the bottom and the top lines beat the Zacks Consensus Estimate.
Net Loss
On a GAAP basis, net loss in the December quarter was $4.2 million or a loss of 9 cents per share against a net income of $6.1 million or 13 cents per share in the prior-year quarter. The year-over-year decline despite higher revenues was primarily due to high operating expenses.
Non-GAAP net income was $4.7 million or 10 cents per share compared with $5.2 million or 11 cents per share in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of loss of 3 cents.
In 2021, GAAP net loss was $8.6 million or a loss of 18 cents per share against a net income of $2.4 million or 5 cents per share in the prior year. Non-GAAP net income was $18.4 million or 38 cents per share compared with $12.6 million or 26 cents per share in 2020.
Revenues
Quarterly total revenues grew to $154.2 million from $130.1 million in the prior-year quarter, driven by the increasing demand for ADTRAN’s network solutions and fiber broadband products. The top line beat the consensus estimate of $140 million. In 2021, total revenues improved to $563 million from $506.5 million in 2020.
The company is experiencing solid demand, underscored by its record-setting bookings in the quarter, which is up 50% year over year. ADTRAN also witnessed a 48% year-over-year growth rate in customers deploying its Software-as-a-Service applications.
Revenues from Network Solutions were $138.8 million compared with $114.1 million in the year-ago quarter. ADTRAN’s end-to-end solutions simplify the deployment of fiber-based broadband services and provide a better customer experience. The company recorded healthy demand trends driven by the accelerated expansion of fiber-to-the-home networks, upgrades to in-home WiFi connectivity, and the adoption of cloud-based automation tools. The solid quarterly performance was further buoyed by improved customer diversification and end-to-end fiber broadband solutions. The quarter witnessed a sharp increase in revenue growth from international Tier 1 operators (up 76% year over year). Services and Support revenues were $15.3 million, down from $16 million.
Other Details
The total cost of sales increased from $76.6 million to $99.7 million. GAAP gross profit came in at $54.4 million compared with $53.5 million in the prior-year quarter for respective margins of 35.3% and 41.1%. Operating loss in the quarter was $7.2 million compared with $3.3 million in the year-ago quarter.
Cash Flow & Liquidity
In 2021, ADTRAN generated $3 million of cash from operating activities against cash utilization of $16.5 million in the prior-year period. As of Dec 31, 2021, the company had $56.6 million in cash and cash equivalents with $31.4 million of deferred compensation liability compared with respective tallies of $60.2 million and $25.9 million in the prior-year period.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
The consensus estimate has shifted -37.5% due to these changes.
VGM Scores
Currently, Adtran has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Adtran has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Adtran (ADTN) Up 1% Since Last Earnings Report?
A month has gone by since the last earnings report for Adtran (ADTN - Free Report) . Shares have added about 1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Adtran due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
ADTRAN Beats Earnings & Revenue Estimates in Q4
ADTRAN reported relatively healthy fourth-quarter 2021 results, wherein both the bottom and the top lines beat the Zacks Consensus Estimate.
Net Loss
On a GAAP basis, net loss in the December quarter was $4.2 million or a loss of 9 cents per share against a net income of $6.1 million or 13 cents per share in the prior-year quarter. The year-over-year decline despite higher revenues was primarily due to high operating expenses.
Non-GAAP net income was $4.7 million or 10 cents per share compared with $5.2 million or 11 cents per share in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of loss of 3 cents.
In 2021, GAAP net loss was $8.6 million or a loss of 18 cents per share against a net income of $2.4 million or 5 cents per share in the prior year. Non-GAAP net income was $18.4 million or 38 cents per share compared with $12.6 million or 26 cents per share in 2020.
Revenues
Quarterly total revenues grew to $154.2 million from $130.1 million in the prior-year quarter, driven by the increasing demand for ADTRAN’s network solutions and fiber broadband products. The top line beat the consensus estimate of $140 million. In 2021, total revenues improved to $563 million from $506.5 million in 2020.
The company is experiencing solid demand, underscored by its record-setting bookings in the quarter, which is up 50% year over year. ADTRAN also witnessed a 48% year-over-year growth rate in customers deploying its Software-as-a-Service applications.
Revenues from Network Solutions were $138.8 million compared with $114.1 million in the year-ago quarter. ADTRAN’s end-to-end solutions simplify the deployment of fiber-based broadband services and provide a better customer experience. The company recorded healthy demand trends driven by the accelerated expansion of fiber-to-the-home networks, upgrades to in-home WiFi connectivity, and the adoption of cloud-based automation tools. The solid quarterly performance was further buoyed by improved customer diversification and end-to-end fiber broadband solutions. The quarter witnessed a sharp increase in revenue growth from international Tier 1 operators (up 76% year over year). Services and Support revenues were $15.3 million, down from $16 million.
Other Details
The total cost of sales increased from $76.6 million to $99.7 million. GAAP gross profit came in at $54.4 million compared with $53.5 million in the prior-year quarter for respective margins of 35.3% and 41.1%. Operating loss in the quarter was $7.2 million compared with $3.3 million in the year-ago quarter.
Cash Flow & Liquidity
In 2021, ADTRAN generated $3 million of cash from operating activities against cash utilization of $16.5 million in the prior-year period. As of Dec 31, 2021, the company had $56.6 million in cash and cash equivalents with $31.4 million of deferred compensation liability compared with respective tallies of $60.2 million and $25.9 million in the prior-year period.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
The consensus estimate has shifted -37.5% due to these changes.
VGM Scores
Currently, Adtran has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Adtran has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.