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ADTRAN (ADTN) Reports Wider Q2 Loss on Lower Revenues Y/Y
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ADTRAN Holdings Inc. (ADTN - Free Report) 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
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%.
Cogent Communications Holdings, Inc. (CCOI - Free Report) 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 - Free Report) 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 - Free Report) 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 (ADTN) Reports Wider Q2 Loss on Lower Revenues Y/Y
ADTRAN Holdings Inc. (ADTN - Free Report) 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 - Free Report) 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 - Free Report) 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 - Free Report) 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.