We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ADTRAN's (ADTN) Q4 Loss Wider Than Expected on Lower Revenues
Read MoreHide Full Article
ADTRAN Holdings, Inc. (ADTN - Free Report) reported soft fourth-quarter 2023 results, wherein both the bottom line and the top line missed the respective Zacks Consensus Estimate. The company recorded a top-line contraction year over year due to geopolitical tension, forex volatility and tough competition from other players in the market.
Net Income
On a GAAP basis, the net loss in the December quarter was $109.9 million or a loss of $1.40 per share against an income of $38.9 million or 49 cents per share in the prior-year quarter. The year-over-year decrease was primarily due to revenue contraction and an income tax benefit in the year-ago quarter. Non-GAAP net loss was $85.9 million or a loss of $1.09 per share against net income of $70.8 million or 89 cents per share in the year-ago quarter. The loss was wider than the Zacks Consensus Estimate of a loss of 9 cents.
In 2023, the GAAP loss was $267.6 million or a loss of $3.41 per share compared with a loss of $2 million or a loss of 3 cents per share in 2022. Non-GAAP net loss in 2023 was $118.6 million or a loss of $1.51 per share against net income of $82.6 million or $1.32 per share in 2022.
ADTRAN Holdings, Inc. Price, Consensus and EPS Surprise
Net sales during the quarter declined to $225.4 million from $358.3 million in the prior-year quarter, owing to weak demand trends. The top line missed the consensus estimate of $232 million. In 2023, revenues improved to $1.15 billion from $1.03 billion in 2022.
Network Solutions contributed $180.4 million in revenues compared with $317.5 million in the prior-year quarter. The persistence of an unfavorable macroeconomic environment and forex volatility in the international market constrained the capex spending from customers. Services and Support revenues were $45.1 million, up from $40.8 million a year ago. Healthy demand for its professional services supported the growth.
Other Details
Total cost of sales decreased from $250.9 million to $147 million. GAAP gross profit came in at $78.5 million compared with $107.4 million in the prior-year quarter. Operating loss in the quarter was $37.6 million compared with an operating loss of $32.9 million in the year-ago quarter.
Cash Flow & Liquidity
In 2023, ADTRAN used $52.9 million of cash for operating activities compared with $44.2 million in 2022. As of Dec 31, 2023, the company had $87.2 million in cash and cash equivalents with $29 million of deferred compensation liability compared with the respective tallies of $108.6 million and $26.7 million in the prior-year period.
NVIDIA Corporation (NVDA - Free Report) , currently sporting a Zacks Rank #1, delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
InterDigital, Inc. (IDCC - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 170.50%. In the last reported quarter, it delivered an earnings surprise of 16.53%.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has delivered an earnings surprise of 13.28%, on average, in the trailing four quarters.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
ADTRAN's (ADTN) Q4 Loss Wider Than Expected on Lower Revenues
ADTRAN Holdings, Inc. (ADTN - Free Report) reported soft fourth-quarter 2023 results, wherein both the bottom line and the top line missed the respective Zacks Consensus Estimate. The company recorded a top-line contraction year over year due to geopolitical tension, forex volatility and tough competition from other players in the market.
Net Income
On a GAAP basis, the net loss in the December quarter was $109.9 million or a loss of $1.40 per share against an income of $38.9 million or 49 cents per share in the prior-year quarter. The year-over-year decrease was primarily due to revenue contraction and an income tax benefit in the year-ago quarter. Non-GAAP net loss was $85.9 million or a loss of $1.09 per share against net income of $70.8 million or 89 cents per share in the year-ago quarter. The loss was wider than the Zacks Consensus Estimate of a loss of 9 cents.
In 2023, the GAAP loss was $267.6 million or a loss of $3.41 per share compared with a loss of $2 million or a loss of 3 cents per share in 2022. Non-GAAP net loss in 2023 was $118.6 million or a loss of $1.51 per share against net income of $82.6 million or $1.32 per share in 2022.
ADTRAN Holdings, Inc. Price, Consensus and EPS Surprise
ADTRAN Holdings, Inc. price-consensus-eps-surprise-chart | ADTRAN Holdings, Inc. Quote
Revenues
Net sales during the quarter declined to $225.4 million from $358.3 million in the prior-year quarter, owing to weak demand trends. The top line missed the consensus estimate of $232 million. In 2023, revenues improved to $1.15 billion from $1.03 billion in 2022.
Network Solutions contributed $180.4 million in revenues compared with $317.5 million in the prior-year quarter. The persistence of an unfavorable macroeconomic environment and forex volatility in the international market constrained the capex spending from customers. Services and Support revenues were $45.1 million, up from $40.8 million a year ago. Healthy demand for its professional services supported the growth.
Other Details
Total cost of sales decreased from $250.9 million to $147 million. GAAP gross profit came in at $78.5 million compared with $107.4 million in the prior-year quarter. Operating loss in the quarter was $37.6 million compared with an operating loss of $32.9 million in the year-ago quarter.
Cash Flow & Liquidity
In 2023, ADTRAN used $52.9 million of cash for operating activities compared with $44.2 million in 2022. As of Dec 31, 2023, the company had $87.2 million in cash and cash equivalents with $29 million of deferred compensation liability compared with the respective tallies of $108.6 million and $26.7 million in the prior-year period.
Zacks Rank & Stocks to Consider
ADTRAN currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NVIDIA Corporation (NVDA - Free Report) , currently sporting a Zacks Rank #1, delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
InterDigital, Inc. (IDCC - Free Report) , carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 170.50%. In the last reported quarter, it delivered an earnings surprise of 16.53%.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has delivered an earnings surprise of 13.28%, on average, in the trailing four quarters.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. It is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.