ADTRAN, Inc. (ADTN - Free Report) reported impressive second-quarter 2021 results, wherein both the bottom line and the top line surpassed their respective Zacks Consensus Estimate. Solid top-line growth, strong segment performance and increased demand for its fiber access platforms backed by its business resiliency drove the Huntsville, AL-based networking equipment maker’s quarterly performance.
Net Income
On a GAAP basis, net income in the June quarter was $5.1 million or 10 cents per share compared with $0.8 million or 2 cents per share in the prior-year quarter. The year-over-year improvement was mainly driven by top-line expansion.
Non-GAAP net income came in at $8.1 million or 16 cents per share compared with $1.6 million or 4 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 3 cents.
ADTRAN, Inc. Price, Consensus and EPS Surprise
Revenues
Quarterly total revenues grew to $143.2 million from $128.7 million in the prior-year quarter, reflecting the increased demand for ADTRAN’s network solutions. The top line surpassed the consensus estimate of $142 million.
The company’s business continues to be driven by solid demand for its fiber access platforms. This, in turn, boosted ADTRAN’s multiple business segments, including Software-as-a-Service platforms, infrastructure and in-home premises equipment, backed by strength exhibited by Tier 3 regional service providers across the United States and Europe.
Sales of network solutions were $125.4 million compared with $111.3 million in the year-ago quarter. ADTRAN’s end-to-end solutions simplify the deployment of fiber-based broadband services and provide better customer experience. Services and support sales were $17.8 million, up from $17.4 million.
Other Details
The total cost of sales increased from $75.2 million to $80.6 million. Gross profit came in at $62.7 million compared with $53.5 million in the prior-year quarter. Operating income in the quarter was $3.9 million against an operating loss of $6 million in the year-ago quarter.
The company announced that its board of directors approved a cash dividend of 9 cents per share for the second quarter of 2021. The amount is payable on Sep 2 to shareholders on record as of Aug 19.
Cash Flow & Liquidity
During the first six months of 2021, ADTRAN generated $18.2 million of net cash from operating activities compared with $1.7 million in the year-ago quarter. As of Jun 30, 2021, the company had $69.9 million in cash and cash equivalents with $116.1 million of total current liabilities.
Zacks Rank & Stocks to Consider
ADTRAN currently has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader industry are Materialise NV (MTLS - Free Report) , F5 Networks, Inc. (FFIV - Free Report) and Duck Creek Technologies, Inc. . While Materialise NV and F5 Networks sport a Zacks Rank #1 (Strong Buy), Duck Creek Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Materialise NV pulled off a trailing four-quarter earnings surprise of 80%, on average.
F5 Networks pulled off a trailing four-quarter earnings surprise of 5.5%, on average.
Duck Creek Technologies pulled off a trailing four-quarter earnings surprise of 250%, on average.
Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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ADTRAN, Inc. (ADTN - Free Report) reported impressive second-quarter 2021 results, wherein both the bottom line and the top line surpassed their respective Zacks Consensus Estimate. Solid top-line growth, strong segment performance and increased demand for its fiber access platforms backed by its business resiliency drove the Huntsville, AL-based networking equipment maker’s quarterly performance.
Net Income
On a GAAP basis, net income in the June quarter was $5.1 million or 10 cents per share compared with $0.8 million or 2 cents per share in the prior-year quarter. The year-over-year improvement was mainly driven by top-line expansion.
Non-GAAP net income came in at $8.1 million or 16 cents per share compared with $1.6 million or 4 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 3 cents.
ADTRAN, Inc. Price, Consensus and EPS Surprise
Revenues
Quarterly total revenues grew to $143.2 million from $128.7 million in the prior-year quarter, reflecting the increased demand for ADTRAN’s network solutions. The top line surpassed the consensus estimate of $142 million.
The company’s business continues to be driven by solid demand for its fiber access platforms. This, in turn, boosted ADTRAN’s multiple business segments, including Software-as-a-Service platforms, infrastructure and in-home premises equipment, backed by strength exhibited by Tier 3 regional service providers across the United States and Europe.
Sales of network solutions were $125.4 million compared with $111.3 million in the year-ago quarter. ADTRAN’s end-to-end solutions simplify the deployment of fiber-based broadband services and provide better customer experience. Services and support sales were $17.8 million, up from $17.4 million.
Other Details
The total cost of sales increased from $75.2 million to $80.6 million. Gross profit came in at $62.7 million compared with $53.5 million in the prior-year quarter. Operating income in the quarter was $3.9 million against an operating loss of $6 million in the year-ago quarter.
The company announced that its board of directors approved a cash dividend of 9 cents per share for the second quarter of 2021. The amount is payable on Sep 2 to shareholders on record as of Aug 19.
Cash Flow & Liquidity
During the first six months of 2021, ADTRAN generated $18.2 million of net cash from operating activities compared with $1.7 million in the year-ago quarter. As of Jun 30, 2021, the company had $69.9 million in cash and cash equivalents with $116.1 million of total current liabilities.
Zacks Rank & Stocks to Consider
ADTRAN currently has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader industry are Materialise NV (MTLS - Free Report) , F5 Networks, Inc. (FFIV - Free Report) and Duck Creek Technologies, Inc. . While Materialise NV and F5 Networks sport a Zacks Rank #1 (Strong Buy), Duck Creek Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Materialise NV pulled off a trailing four-quarter earnings surprise of 80%, on average.
F5 Networks pulled off a trailing four-quarter earnings surprise of 5.5%, on average.
Duck Creek Technologies pulled off a trailing four-quarter earnings surprise of 250%, on average.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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