Communication network solution provider ADTRAN Inc. (ADTN - Free Report) reported second-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 27 cents per share, beating the Zacks Consensus Estimate of 22 cents. Total revenue of $184.7 million was up 13.5% year over year. The top line also beat the consensus mark of $183.1 million and was primarily driven by 20.6% increase in Service sales to $29.1 million in the reported quarter. In addition, Product sales increased 12.3% year over year to $155.5 million.
Quarterly gross margin came in at 45.8% compared with 48.5% in the prior-year quarter. Operating income in the reported quarter totaled $16.4 million compared with $14.8 million in the last-year quarter.
At the end of the second quarter, ADTRAN generated $20.6 million of cash from operations, a marginal decrease from the year-ago figure. ADTRAN exited second-quarter 2017 with cash and cash equivalents of $88.8 million compared with $70.9 million at Jun 2016 end.
Dividend
The company declared a cash dividend of 9 cents per share in the second quarter, to be paid on Aug 17 to shareholders of record as of Aug 3.
Zacks Rank & Key Picks
ADTRAN carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader Computer and Technology sector are Applied Optoelectronics (AAOI - Free Report) , Arista Networks, Inc. (ANET - Free Report) and Adobe Systems Incorporated (ADBE - Free Report) . While Applied Optoelectronics flaunts a Zacks Rank #1 (Strong Buy), Arista and Adobe Systems carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Applied Optoelectronics, Arista and Adobe Systems have rallied over 100%, 16% and 13%, respectively in the last three months.
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Communication network solution provider ADTRAN Inc. (ADTN - Free Report) reported second-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 27 cents per share, beating the Zacks Consensus Estimate of 22 cents. Total revenue of $184.7 million was up 13.5% year over year. The top line also beat the consensus mark of $183.1 million and was primarily driven by 20.6% increase in Service sales to $29.1 million in the reported quarter. In addition, Product sales increased 12.3% year over year to $155.5 million.
Quarterly gross margin came in at 45.8% compared with 48.5% in the prior-year quarter. Operating income in the reported quarter totaled $16.4 million compared with $14.8 million in the last-year quarter.
At the end of the second quarter, ADTRAN generated $20.6 million of cash from operations, a marginal decrease from the year-ago figure. ADTRAN exited second-quarter 2017 with cash and cash equivalents of $88.8 million compared with $70.9 million at Jun 2016 end.
Dividend
The company declared a cash dividend of 9 cents per share in the second quarter, to be paid on Aug 17 to shareholders of record as of Aug 3.
Zacks Rank & Key Picks
ADTRAN carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader Computer and Technology sector are Applied Optoelectronics (AAOI - Free Report) , Arista Networks, Inc. (ANET - Free Report) and Adobe Systems Incorporated (ADBE - Free Report) . While Applied Optoelectronics flaunts a Zacks Rank #1 (Strong Buy), Arista and Adobe Systems carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Applied Optoelectronics, Arista and Adobe Systems have rallied over 100%, 16% and 13%, respectively in the last three months.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>
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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