ADTRAN reports higher Q3 profits, 75% income spike
Networking and communications equipment provider ADTRAN (Nasdaq: ADTN) reported third quarter income of $16.21 million, a 75 percent jump over the $9.27 million the company earned in the same period a year ago.
ADTRAN CEO Tom Stanton in an earnings release credited the quarter's performance on "lower operating expenses combined with a strong performance by both our carrier and enterprise businesses." The results were also "positively impacted by our international business which achieved record revenue level," he added.
Overall, ADTRAN reported sales of $177.4 million compared to $162.1 million in the year-ago period and $162.2 million in the second quarter of this year, and earnings per share of 28 cents, compared to 15 cents in third quarter 2012. As a result the company said it would pay a cash dividend of 9 cents a share at the close of business Oct. 24.
On Monday, in advance of the earnings announcement, Zacks issued a research note cutting ADTRAN shares from outperform to neutral "based on its high level of current valuation" and the fact that the company's stock price that has gone up more than 74 percent in the past year. This, the researchers said, provides "limited opportunity for above market gain."
The Zacks note did credit ADTRAN, noting that the company "continues to perform well owing to solid contributions from its Internetworking and Broadband Access product divisions" and is benefiting "from an improved spending atmosphere and increased strategic investments by ADTRAN's carrier customers."
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