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ADTRAN (ADTN) Beats Earnings & Revenue Estimates in Q4
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Communication network solution provider ADTRAN Inc. (ADTN - Free Report) reported fourth-quarter 2016 results, wherein both the top line and the bottom line surpassed the Zacks Consensus Estimate.
The company’s impressive performance can be attributed to robust growth in its international segment and its Services business.
Operating Results
In the reported quarter, GAAP net income came in at $7.57 million or 16 cents per share compared with $5.72 million or 12 cents in the year-ago quarter. Quarterly adjusted earnings per share of 17 cents surpassed the Zacks Consensus Estimate of 10 cents. Total revenue of $162.99 million was up 17.25% year over year. The top line also beat the consensus mark of $152 million.
Quarterly gross margin came in at 43.43% compared with 44.92% in the prior-year quarter. Operating income in the reported quarter totaled $4.27 million as against $2.80 million in the last-year quarter.
At the end of 2016, ADTRAN generated $42 million of cash from operations compared with $18.54 million in the year-ago period. As of Dec 31, 2016, the company had used cash of $4.23 million compared with a cash flow of $13.74 million as of Dec 31, 2015. At the end of 2016, ADTRAN had $79.90 million of cash and cash equivalents compared with $84.55 million in 2015.
The company declared a cash dividend of 9 cents per share in the fourth quarter, which will be paid on Feb 16, to shareholders on record as of Feb 2, 2017.
Notably, ADTRAN has outperformed the broader Zacks categorized Communication Infrastructure Industry in the past three months. The company gained 21.24% compared to the industry that saw an increase 10.43% over the same period.
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ADTRAN (ADTN) Beats Earnings & Revenue Estimates in Q4
Communication network solution provider ADTRAN Inc. (ADTN - Free Report) reported fourth-quarter 2016 results, wherein both the top line and the bottom line surpassed the Zacks Consensus Estimate.
The company’s impressive performance can be attributed to robust growth in its international segment and its Services business.
Operating Results
In the reported quarter, GAAP net income came in at $7.57 million or 16 cents per share compared with $5.72 million or 12 cents in the year-ago quarter. Quarterly adjusted earnings per share of 17 cents surpassed the Zacks Consensus Estimate of 10 cents. Total revenue of $162.99 million was up 17.25% year over year. The top line also beat the consensus mark of $152 million.
Quarterly gross margin came in at 43.43% compared with 44.92% in the prior-year quarter. Operating income in the reported quarter totaled $4.27 million as against $2.80 million in the last-year quarter.
At the end of 2016, ADTRAN generated $42 million of cash from operations compared with $18.54 million in the year-ago period. As of Dec 31, 2016, the company had used cash of $4.23 million compared with a cash flow of $13.74 million as of Dec 31, 2015. At the end of 2016, ADTRAN had $79.90 million of cash and cash equivalents compared with $84.55 million in 2015.
ADTRAN, Inc. Price, Consensus and EPS Surprise
ADTRAN, Inc. Price, Consensus and EPS Surprise | ADTRAN, Inc. Quote
Dividend
The company declared a cash dividend of 9 cents per share in the fourth quarter, which will be paid on Feb 16, to shareholders on record as of Feb 2, 2017.
Our Take
Despite competition from peers like Commscope Holdings (COMM - Free Report) , SBA Communications Corp (SBAC - Free Report) , and Zayo Group Holdings Inc. , ADTRAN is well poised for future growth and expansion. The Zacks Ranks #3 company (Hold) has been rapidly growing its business. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, ADTRAN has outperformed the broader Zacks categorized Communication Infrastructure Industry in the past three months. The company gained 21.24% compared to the industry that saw an increase 10.43% over the same period.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>