Back to top

Analyst Blog

Communication network solution provider ADTRAN Inc. (ADTN - Analyst Report) reported better-than-expected first quarter of 2013 financial results, owing to strong contributions from the carrier and enterprise divisions. The results were positively impacted by an improved spending atmosphere and increased strategic investment on the part of the carrier customers of the company. ADTRAN currently has a Zacks Rank #3 (Hold).

Quarterly GAAP net income was $7.9 million or 13 cents per share compared with a net income of $13 million or 20 cents per share in the year-ago quarter. However, first quarter of 2013 adjusted earnings per share were14 cents, significantly higher than the Zacks Consensus Estimate of 8 cents per share.

The company reported quarterly total revenue of $143 million, up 6.1% year over year and slightly better than the Zacks Consensus Estimate of $141 million.

Quarterly gross margin was 48.7% compared with 55% in the prior-year quarter. Operating income registered a steep drop of 59.4% year over year to $6.6 million.

Quarterly operating margin was 6.8% compared with 14.9% 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 May 9 to shareholders of record as of Apr 25.

During the first quarter of 2013, ADTRAN generated $26.3 million of cash from operation compared with $24.5 million in the year-ago quarter. Free cash flow, in the reported quarter was $25.5 million compared with $20.5 million in the prior-year quarter.

At the end of the first quarter of 2013, cash and marketable securities were $247.9 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 Cisco Systems Inc. (CSCO - Analyst Report), Brocade Communications Systems Inc. (BRCD - Snapshot Report) and Infinera Corp. (INFN - Snapshot Report). All these stocks carry 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

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
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%