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ADTRAN (ADTN) Beats Earnings & Revenue Estimates in Q1

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Communication network solution provider ADTRAN Inc. (ADTN - Free Report) reported first-quarter 2017 results, wherein both the top line and the bottom line surpassed the Zacks Consensus Estimate.

The company’s earnings (including stock-based compensation expenses) came in at 15 cents per share, beating the Zacks Consensus Estimate of 13 cents. Total revenue of $170.3 million was up 19.76% year over year. The top line also beat the consensus mark of $168 million.

Quarterly gross margin came in at 43.3%, compared with 46.27% in the prior-year quarter. Operating income in the reported quarter totaled $7.03 million as against $5.52 million in the last-year quarter.

At the end of the first quarter of 2017, ADTRAN generated $9.04 million of cash from operations, compared with $15.68 million in the year-ago period. ADTRAN exited the first quarter of 2017 with cash and cash equivalents of $72.6 million, compared with $79.9 million at the end of 2016.

Dividend

The company declared a cash dividend of 9 cents per share in the first quarter, which will be paid on May 18, to shareholders on record as of May 4, 2017.

Price Performance

ADTRAN underperformed the Zacks categorized Communication Infrastructure industry in the past three months. The company lost 11.74% while the industry gained 0.67% over the same period.

The outperformance in the first quarter might give the much needed boost to the stock.

Zacks Rank

ADTRAN carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader computer & technology sector include Applied Optoelectronics (AAOI - Free Report) , Apple (AAPL - Free Report) and Analog Devices (ADI - Free Report) . Applied Optoelectronics and Analog Devices sport a Zacks Rank #1 (Strong Buy), while Apple carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Applied Optoelectronics, Apple and Analog Devices gained over 88%, 21% and 6%, respectively, on a year-to-date basis.

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