We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 Misses Q3 Earnings Estimates, Beats on Revenues
Read MoreHide Full Article
Key Takeaways
ADTRAN's Q3 revenues rose to $279.4M, beating estimates on strong demand across both segments.
Non-GAAP EPS of 5 cents missed consensus by a penny despite higher operating income and margins.
For Q4, ADTRAN projects revenues of $275-$285M and an operating margin between 3.5% and 7.5%.
ADTRAN Holdings, Inc. (ADTN - Free Report) reported mixed third-quarter 2025 results, with the top line surpassing the Zacks Consensus Estimate but the bottom line missing the same.
The company recorded a top-line expansion year over year, driven by solid demand trends in both segments. Management’s focus on cost optimization and enhancing its operating model to ensure higher long-term shareholder returns is positive. However, macroeconomic headwinds are worrisome.
Net Income
On a GAAP basis, net loss in the September quarter was $10.3 million or a loss of 12 cents per share compared with a net loss of $33.3 million or a loss of 38 cents per share in the prior-year quarter. The narrower loss was attributable to top-line growth.
Excluding non-recurring items, non-GAAP earnings for the reported quarter were $3.7 million or 5 cents per share against a net loss of $5.3 million or a loss of 7 cents per share a year ago. The bottom line missed the Zacks Consensus Estimate by a penny.
ADTRAN Holdings, Inc. Price, Consensus and EPS Surprise
Quarterly total revenues jumped to $279.4 million from $227.7 million in the prior-year quarter, driven by diligent execution of operational plans and increasing demand for state-of-the-art solutions for cloud, AI and edge computing. ADTRAN witnessed growth across all major revenue categories and gained market share in key areas. The top line beat the consensus estimate of $275 million.
Network Solutions contributed $232.5 million in revenues compared with $181.5 million in the prior-year quarter. Services and Support revenues were $46.9 million, up from $46.2 million in the year-earlier quarter.
Other Details
Non-GAAP gross margin in the reported quarter was 42.1% compared with 41.1% in the prior-year quarter. Non-GAAP operating income surged to $15.1 million from $0.5 million in the year-ago quarter for respective margins of 5.4% and 0.2%.
Cash Flow & Liquidity
In the first nine months of 2025, ADTRAN generated $87.5 million of cash from operating activities compared with $101.1 million in the prior-year period. As of Sept. 30, 2025, the company had $93.7 million in cash and cash equivalents compared with $25.9 million of non-current lease obligations.
Outlook
For the fourth quarter of 2025, ADTRAN expects revenues in the range of $275-$285 million. Non-GAAP operating margin is expected to be in the band of 3.5% to 7.5%.
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting a growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. Arista delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating a 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. Akamai delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying a growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. Pinterest delivered an average negative earnings surprise of 1.1% in the last four reported quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ADTRAN Misses Q3 Earnings Estimates, Beats on Revenues
Key Takeaways
ADTRAN Holdings, Inc. (ADTN - Free Report) reported mixed third-quarter 2025 results, with the top line surpassing the Zacks Consensus Estimate but the bottom line missing the same.
The company recorded a top-line expansion year over year, driven by solid demand trends in both segments. Management’s focus on cost optimization and enhancing its operating model to ensure higher long-term shareholder returns is positive. However, macroeconomic headwinds are worrisome.
Net Income
On a GAAP basis, net loss in the September quarter was $10.3 million or a loss of 12 cents per share compared with a net loss of $33.3 million or a loss of 38 cents per share in the prior-year quarter. The narrower loss was attributable to top-line growth.
Excluding non-recurring items, non-GAAP earnings for the reported quarter were $3.7 million or 5 cents per share against a net loss of $5.3 million or a loss of 7 cents per share a year ago. The bottom line missed the Zacks Consensus Estimate by a penny.
ADTRAN Holdings, Inc. Price, Consensus and EPS Surprise
ADTRAN Holdings, Inc. price-consensus-eps-surprise-chart | ADTRAN Holdings, Inc. Quote
Revenues
Quarterly total revenues jumped to $279.4 million from $227.7 million in the prior-year quarter, driven by diligent execution of operational plans and increasing demand for state-of-the-art solutions for cloud, AI and edge computing. ADTRAN witnessed growth across all major revenue categories and gained market share in key areas. The top line beat the consensus estimate of $275 million.
Network Solutions contributed $232.5 million in revenues compared with $181.5 million in the prior-year quarter. Services and Support revenues were $46.9 million, up from $46.2 million in the year-earlier quarter.
Other Details
Non-GAAP gross margin in the reported quarter was 42.1% compared with 41.1% in the prior-year quarter. Non-GAAP operating income surged to $15.1 million from $0.5 million in the year-ago quarter for respective margins of 5.4% and 0.2%.
Cash Flow & Liquidity
In the first nine months of 2025, ADTRAN generated $87.5 million of cash from operating activities compared with $101.1 million in the prior-year period. As of Sept. 30, 2025, the company had $93.7 million in cash and cash equivalents compared with $25.9 million of non-current lease obligations.
Outlook
For the fourth quarter of 2025, ADTRAN expects revenues in the range of $275-$285 million. Non-GAAP operating margin is expected to be in the band of 3.5% to 7.5%.
Zacks Rank & Stock 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.
Upcoming Releases
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting a growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. Arista delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating a 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. Akamai delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying a growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. Pinterest delivered an average negative earnings surprise of 1.1% in the last four reported quarters.