NEW YORK (AP) -- Adtran's stock surged in morning trading on Wednesday, a day after the network equipment maker's first-quarter results beat Wall Street's expectations.
THE SPARK: Late Tuesday Adtran reported adjusted earnings of 17 cents per share on revenue of $143 million. Analysts polled by FactSet expected earnings of 8 cents per share on revenue of $140.3 million.
THE ANALYSIS: Jefferies analyst George Notter said in a client note that Adtran gave sparse details on its quarterly performance, other than to say that its domestic carrier business continued to solidify while its overseas and enterprise businesses improved.
The analyst maintained an "Underperform" rating, saying that the Huntsville, Ala., company still faces risk from pending market share declines at CenturyLink and Frontier, as well as other issues.
A representative for Adtran did not immediately respond to an email seeking comment.
SHARE ACTION: Shares of Adtran Inc. gained $2.39, or 12.1 percent, to $22.10 on morning trading. The stock has traded in a 52-week range of $15.38 to $31.52. It is up 1 percent for the year-to-date.