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Earnings Review and Free Research Report: ADTRAN’s Sales Increased 9.6%; Adjusted EPS Soared 42%

LONDON, UK / ACCESSWIRE / October 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on ADTRAN, Inc. (NASDAQ: ADTN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ADTN, following the Company's disclosure of its third quarter fiscal 2017 operating results on October 17, 2017. The networking equipment maker exceeded earnings estimates and also declared a dividend of $0.09 per share to be paid to shareholders of record as on November 01, 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:


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Earnings Reviewed

For the quarter ended September 30, 2017, ADTRAN's sales were $185.1 million, up 9.6% compared to sales of $168.9 million for Q3 2016. The Company's reported sales numbers missed analysts' estimates of $185.4 million.

During Q3 2017, ADTRAN's GAAP gross margins were 46.7% compared to 44.9% for Q3 2016. The Company's operating income was $18.3 million on a GAAP basis for the reported quarter, up 81% compared to the $10.1 million reported in the year-ago same period. The y-o-y increase in operating income was attributable to higher revenue with a favorable mix of gross margins, partially offset by higher operating expenses.

ADTRAN's non-GAAP operating income, or adjusted earnings before interest and taxes (EBIT), was $20.8 million for Q3 2017, reflecting an increase of 46% compared to $14.3 million for Q3 2016. The Company's adjusted EBIT margin was 11.3% for the reported quarter compared to 8.5% for the year-earlier corresponding quarter.

For Q3 2017, ADTRAN reported net income of $15.90 million, up 28% compared to $12.42 million for Q3 2016. The Company's earnings per share (EPS), assuming dilution, was $0.33 for the reported quarter versus $0.26 for the prior year's comparable quarter. ADTRAN's non-GAAP EPS increased 42% to $0.37 for Q3 2017 compared to $0.26 for Q3 2016. The Company's earnings beat Wall Street's estimates of $0.27 per share.

Segment Results

During Q3 2017, ADTRAN's Networking Solutions segment's revenues, including both international and domestic markets, came in at $145.5 million, up 7% on a y-o-y basis. The Company's Services & Support segment's revenues were a record $39.6 million during the reported quarter, reflecting a growth of 22% on a y-o-y basis. ADTRAN's domestic markets revenues were $147.9 million, or 80% of the total revenue, while its international revenues were $37.2 million, or 20% of the overall revenue, for the reported quarter. ADTRAN's domestic revenues grew 16% on a y-o-y basis, led by a growth in the Company's domestic tier 1 products and services businesses, while its international business revenues decreased 10% on a y-o-y basis.

On a category basis, ADTRAN's Access & Aggregation segment's revenues totaled $136 million, up 13% compared to revenues of $120.6 million for Q3 2016. The Company's Customer Devices segment's revenues were $35.6 million for the reported quarter, up 8% compared to $33 million for the year-ago same period. ADTRAN's Traditional & Other Products segment's revenues totaled $13.6 million for Q3 2017, down 11% compared to $15.3 million for Q3 2016.

Cash Matters

ADTRAN's unrestricted cash and marketable securities, net of debt, totaled $249.2 million at the end of Q3 2017, after paying $4.3 million in dividends during the reported quarter. For Q3 2017, ADTRAN produced $1.4 million of cash flow from operations. The Company's net trade accounts receivable were $101.6 million at quarter-end, resulting in a Day Sales Outstanding (DSO) of 51 days compared to 55 days at the end of Q3 2016.

ADTRAN announced that its Board of Directors declared a cash dividend for the third quarter of 2017. The quarterly cash dividend is at $0.09 per common share and will be paid to holders of record at the close of business on November 01, 2017. The ex-dividend date is October 31, 2017, and the payment date is set for November 15, 2017.

Stock Performance

On Thursday, October 19, 2017, the stock closed the trading session at $21.85, dropping 2.24% from its previous closing price of $22.35. A total volume of 695.27 thousand shares have exchanged hands, which was higher than the 3-month average volume of 345.81 thousand shares. ADTRAN's stock price surged 11.20% in the past six months and 9.52% in the previous twelve months. The stock is trading at a PE ratio of 27.21 and has a dividend yield of 1.65%. At Thursday's closing price, the stock's net capitalization stands at $1.04 billion.

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SOURCE: Pro-Trader Daily