Communication network solution provider ADTRAN Inc. (ADTN - Free Report) reported third-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 $12.4 million or 26 cents per share compared with $7.07 million or 14 cents in the year-ago quarter. Quarterly adjusted earnings per share of 23 cents surpassed the Zacks Consensus Estimate of 20 cents. Total revenue of $168.89 million was up 7% year over year. The top line also beat the consensus mark of $162 million.
Quarterly gross margin came in at 44.9% compared with 44.7% in the prior-year quarter. Operating income in the reported quarter totaled $10.13 million compared with $8.07 million in the last-year quarter.
At the end of the first three quarters of 2016, ADTRAN generated $27.8 million of cash from operations compared with $23.3 million in the year-ago comparable period. As of Sep 30, 2016, the company had used cash of $18.94 million compared with a cash flow of $13.16 million as of Sep 30, 2015. At the end of the first nine months of 2016, ADTRAN had $66.30 million of cash and cash equivalents compared with $83.69 million in 2015.
Dividend
The company declared a cash dividend of 9 cents per share in the third quarter, which will be paid on Nov 17, to shareholders on record as of Nov 3, 2016.
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 company, which carries a Zacks Ranks #3 (Hold), has been rapidly growing its business. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Communication network solution provider ADTRAN Inc. (ADTN - Free Report) reported third-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 $12.4 million or 26 cents per share compared with $7.07 million or 14 cents in the year-ago quarter. Quarterly adjusted earnings per share of 23 cents surpassed the Zacks Consensus Estimate of 20 cents. Total revenue of $168.89 million was up 7% year over year. The top line also beat the consensus mark of $162 million.
Quarterly gross margin came in at 44.9% compared with 44.7% in the prior-year quarter. Operating income in the reported quarter totaled $10.13 million compared with $8.07 million in the last-year quarter.
At the end of the first three quarters of 2016, ADTRAN generated $27.8 million of cash from operations compared with $23.3 million in the year-ago comparable period. As of Sep 30, 2016, the company had used cash of $18.94 million compared with a cash flow of $13.16 million as of Sep 30, 2015. At the end of the first nine months of 2016, ADTRAN had $66.30 million of cash and cash equivalents compared with $83.69 million in 2015.
Dividend
The company declared a cash dividend of 9 cents per share in the third quarter, which will be paid on Nov 17, to shareholders on record as of Nov 3, 2016.
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 company, which carries a Zacks Ranks #3 (Hold), has been rapidly growing its business. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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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