Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Communication network solution provider ADTRAN Inc. (ADTN - Analyst Report) reported strong second-quarter 2013 financial results, owing to strong contributions from its Internetworking and Broadband Access product divisions. The results were positively impacted by an improved spending atmosphere and increased strategic investment by its carrier customers. ADTRAN currently has a Zacks Rank #1 (Strong Buy).

In the second quarter of 2013, GAAP net income was $9.9 million or 17 cents per share compared with $21.1 million or 33 cents per share in the year-ago quarter. However, quarterly adjusted earnings per share were 18 cents, well above the Zacks Consensus Estimate of 15 cents per share. The company reported quarterly total revenue of $162.2 million, down 11.8% year over year but outpaced the Zacks Consensus Estimate of $153 million.

Quarterly gross margin was 49.2% compared with 51.7% in the prior-year quarter. Operating income registered a steep drop of 47.6% year over year to $14.1 million. Quarterly operating margin was 8.7% compared with 14.6% in the prior-year quarter. The company’s board of directors declared a cash dividend of 9 cents per share for the quarter. The dividend will be paid on Aug 8 to shareholders of record as of Jul 25.

During the first half of 2013, ADTRAN generated $29.4 million of cash from operations compared with $37 million in the year-ago period. Free cash flow, in the reported period, was $25.8 million compared with $29.2 million in the prior-year period. At the end of the second quarter of 2013, cash and marketable securities were $190.1 million compared with $228.9 million at the end of 2012. Total debt, at the end of the reported quarter, was $46 million, remaining same to the end of 2012.  

Other Stocks to Consider

Other stocks in this industry that warrant a look includes Calix Inc. (CALX - Snapshot Report), Crown Castle International Corp. (CCI - Analyst Report) and Equinix Inc. (EQIX - Analyst Report). While Calix currently carries a Zacks Rank #1 (Strong Buy), both Crown Castle and Equinix have a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%