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ADTRAN (ADTN) Beats Q4 Earnings and Revenue Estimates

Communication network solution provider ADTRAN Inc. ADTN reported fourth-quarter 2015 financial results wherein the top and bottom line surpassed the Zacks Consensus Estimate.

In the reported quarter, GAAP net income stood at $5.7 million or 12 cents a share compared with $9.3 million or 17 cents in the year-ago quarter. Meanwhile, quarterly adjusted earnings per share of 13 cents surpassed the Zacks Consensus Estimate of 4 cents. Total revenue of $139 million was down 3.5% year over year but managed to surpass the consensus estimate of $138 million.

Quarterly gross margin came in at 44.9% compared with 47.6% in the prior-year quarter. Meanwhile, operating income in the reported quarter totaled $2.8 million compared with $4 million in the last year quarter. Quarterly operating margin was 2% compared with 2.8% in the prior-year quarter.

At the end of 2015, ADTRAN generated $18.5 million of cash from operations compared with $55.8 million in the same period last year. Free cash flow, at the end of the first nine months of 2015, was $6.7 million compared with $44.5 million a year ago. The company exited the fourth quarter of 2015 with $119.6 million of cash and cash equivalents compared with $120.3 million at the end of 2014.

Notably, the company has declared a cash dividend of 9 cents per share in the fourth quarter of 2015, which will be paid on Feb 18, 2016, to shareholders on record as of Feb 4, 2016.

Zacks Ranks & Other Key Picks

ADTRAN currently carries a Zacks Rank #2 (Buy). Other favorably ranked stocks in the sector include Zayo Group Holdings, Inc. ZAYO, Calix Inc. CALX and Harris Corporation HRS. All the three companies carry a Zacks Rank #2.

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ADTRAN INC (ADTN): Free Stock Analysis Report
 
CALIX INC (CALX): Free Stock Analysis Report
 
ZAYO GROUP HLDG (ZAYO): Free Stock Analysis Report
 
HARRIS CORP (HRS): Free Stock Analysis Report
 
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