ADTRAN (NASDAQ:ADTN – Get Free Report) posted its quarterly earnings results on Tuesday. The communications equipment provider reported $0.14 EPS for the quarter, topping analysts’ consensus estimates of $0.09 by $0.05, FiscalAI reports. ADTRAN had a positive return on equity of 4.23% and a negative net margin of 4.15%.The company had revenue of $286.09 million for the quarter, compared to analysts’ expectations of $285.48 million. During the same period in the previous year, the firm earned $0.03 EPS. The firm’s revenue was up 15.5% compared to the same quarter last year.
Here are the key takeaways from ADTRAN’s conference call:
- The company reported $286.1 million in Q1 revenue, up 15.5% year-over-year, with non‑GAAP operating margin improving to 6.9% (a 300 bps year-over-year expansion) and non‑GAAP gross margin of 43%.
- Optical Networking Solutions showed strength (Q1 revenue $97.3M, +24% y/y) and ADTRAN highlighted early traction with cloud/hyperscaler customers plus the new LiteWave800 family (prototype shown; ~1 year to production) aimed at ultra‑low‑power intra‑data‑center AI connectivity.
- Federal broadband funding (BEAD) is beginning to flow to operators and ADTRAN said it is seeing early orders and expects BEAD to become more meaningful toward the back half of the year, contributing to multi‑year addressable demand for the company.
- Industry headwinds remain—elevated memory prices and higher freight costs (partly tied to Middle East disruptions) are pressuring costs; management says it has taken pricing actions and achieved margin expansion but cautions these inputs could worsen.
- Balance sheet and near‑term outlook: operating cash flow was $12.7M with free cash flow of -$3.3M and cash of $88.3M, and Q2 guidance calls for revenue of $283M–$303M with non‑GAAP operating margin of 5%–9%.
ADTRAN Price Performance
Shares of ADTRAN stock traded down $3.87 during trading hours on Tuesday, reaching $14.47. The company’s stock had a trading volume of 2,870,504 shares, compared to its average volume of 1,796,508. The firm has a 50 day moving average price of $12.93 and a 200-day moving average price of $10.35. ADTRAN has a one year low of $7.11 and a one year high of $18.69. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.76 and a quick ratio of 1.16. The stock has a market cap of $1.17 billion, a P/E ratio of -28.40 and a beta of 1.45.
Institutional Trading of ADTRAN
Analyst Ratings Changes
A number of brokerages have issued reports on ADTN. Rosenblatt Securities lifted their price target on shares of ADTRAN from $11.00 to $16.00 and gave the company a “buy” rating in a report on Friday, February 27th. Needham & Company LLC set a $18.00 price target on shares of ADTRAN and gave the company a “buy” rating in a report on Thursday, April 9th. Argus upgraded shares of ADTRAN to a “hold” rating in a report on Wednesday, March 4th. Evercore assumed coverage on ADTRAN in a research note on Tuesday, April 14th. They issued an “outperform” rating and a $18.00 price objective on the stock. Finally, B. Riley Financial reaffirmed a “buy” rating on shares of ADTRAN in a research note on Friday. Four investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $17.00.
Read Our Latest Analysis on ADTN
About ADTRAN
ADTRAN, Inc is a global provider of networking and communications equipment, specializing in broadband access solutions for service providers, enterprises and government organizations. Founded in 1985 and headquartered in Huntsville, Alabama, the company develops and delivers hardware and software platforms that enable high-speed Internet access over fiber, copper and wireless networks. Its core offerings include fiber access and aggregation equipment, Ethernet switches, customer premises equipment (CPE) and network management systems designed to support both legacy and next-generation broadband deployments.
The company’s product portfolio encompasses a broad range of optical line terminals (OLTs), optical network terminals (ONTs), multiservice access gateways and virtualized access solutions.
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