Adtran shares jump after solid 3Q earnings report

Adtran shares advance after 3rd-quarter results surpass expectations

• On 4:33 pm EDT, Wednesday October 14, 2009

NEW YORK (AP) -- Shares of communications equipment maker Adtran Inc. hit a 52-week high Wednesday after the company posted higher-than-expected profit and sales for the third quarter.

The company posted a profit of $21.6 million, or 34 cents per share, down 4 percent from $22.4 million, or 35 cents per share, in the same period a year earlier.

Revenue fell 7 percent to $128.1 million.

Despite the decline, the quarter's results were slightly better than what analysts were expecting. According to Thomson Reuters, analysts on average were predicting a profit of 32 cents per share on sales of $126.4 million.

Adtran said optical access revenue grew 20 percent as carriers increased investment in wireless bandwidth upgrades, and broadband access revenue grew 29 percent. Both marketing, research and development and administrative expenses declined year-over-year, helping the company's bottom line.

Shares rose 46 cents to close at $25.71 in afternoon trading. Earlier, the stock hit a 52-week high of $26.14.