Communication network solution provider, ADTRAN Inc. ADTN reported third-quarter 2015 financial results wherein the bottom line surpassed the Zacks Consensus Estimate while the top line fell below the same.
In the reported quarter, GAAP net income stood at $7.1 million or 14 cents a share compared with $11.3 million or 21 cents in the year-ago quarter. Meanwhile, quarterly adjusted earnings per share of 16 cents surpassed the Zacks Consensus Estimate of 14 cents. Also, quarterly total revenue of $158.1 million was down 2.9% year over year and was also below the consensus estimate of $161 million.
Quarterly gross margin came in at 44.7% compared with 48.1% in the prior-year quarter. Meanwhile, operating income in the quarter totaled $8.1 million compared with $12.5 million in the last-year quarter. Quarterly operating margin was 5.1% compared with 7.7% in the prior-year quarter.
At the end of the first nine months of 2015, ADTRAN generated $23.3 million of cash from operations compared with $41 million in the same period last year. Free cash flow, at the end of the first nine months of 2015, was $15.5 million compared with $32.8 million a year ago. The company exited the third quarter of 2015 with $125.8 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 for the third quarter of 2015 which will be paid on Nov 12, 2015, to shareholders on record as of Oct 29, 2015.
Zacks Ranks & Key Picks
ADTRAN currently carries a Zacks Rank #2 (Buy). Other favorably ranked stocks in the sector include Equinix, Inc. EQIX, Calix Inc. CALX and CommScope Holding Company, Inc. COMM. CommScope sports a Zacks Rank #1 (Strong Buy) while the other two companies carry a Zacks Rank #2.
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