ADTRAN, Inc. (NasdaqGS:ADTN) is scheduled to report Q3 earnings results after markets close for trading on November 2, 2020.
The company is expected to report earnings of $0.07/share on revenue of $132.8 million. The consensus earnings per share (EPS) of $0.07/share is based on a poll of 6 analysts and represents a growth in eps of 213.9% over the same quarter last year, when the company reported earnings of -$0.06/share.
The revenue forecast of $132.8 million based on a poll of 7 analysts implies a year-over-year (YoY) growth in revenue of 16.4%. Last year the company reported $114.1 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, missed 1 quarters, and met expectations 1 quarters.
What are your expectations from ADTRAN, Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −3.4%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 6, 2020||$12.84||$12.40||−3.4%||Decline|
|May 7, 2020||$10.27||$11.38||10.9%||Increase|
|February 6, 2020||$9.93||$8.63||−13.1%||Decline|
|October 31, 2019||$9.58||$9.18||−4.2%||Decline|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.16, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.16 implies a 0.1% chance of earnings manipulation.
Fundamentals And Technical Analysis
ADTRAN, Inc. is currently trading at $12.01/share, down −3.3% for the day. The company is trading at approximately 91.0% of its 52-week high of $13.20/share. The company’s stock price is down −3.1% since the last earnings report and up 3.2% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 65.02 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −8.60 and a forward P/E multiple of 123.47.
ADTRAN, Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.58. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$12.01|
|P/E Ratio (Fwd)||123.5x|
|Total Debt / Total Capital||1.0%|
|Levered Free Cash Flow||-$20.133 million|
|EV / EBITDA||−21.0x|
ADTRAN, Inc. is a small-cap stock with a market capitalization of $576 million and a total enterprise value of $477.8 million. The company operates in the Information Technology sector and the Communications Equipment industry.
ADTRAN, Inc. provides networking and communications equipment for service providers, cable/multiple system operators, and distributed enterprises in the United States and internationally. The company operates through Network Solutions, and Services & Support segments. It offers fiber to the premises and fiber to the node (FTTN) multi-service access nodes (MSAN); fiber aggregation and FTTN MSAN; network management and subscriber services control and orchestration software; software defined networking -controlled programmable network elements; fiber to the distribution point units; optical line terminals and transport solutions; optical networking edge aggregation; IP digital subscriber line access multiplexers; cabinet and outside-plant enclosures and services; transceivers, cables, and other miscellaneous materials; and other products, software, and services. The company also provides broadband customer premise solutions and point-to-point Ethernet optical network terminals; radio frequency over glass micro nodes; residential gateway products and accessories; Wi-Fi access points; ethernet switches for multi-gigabit local area networking; SmartOS software licensing for residential and enterprise gateway, and Wi-Fi devices; cloud-based SaaS management platforms; Wi-Fi-enabled residential gateway products and accessories; access points and virtual wireless local area networks for business-class Wi-Fi and management; and pre-sale and post-sale technical support. In addition, it offers planning, engineering, program management, maintenance, installation, and commissioning services. Further, the company offers time division multiplexed and asynchronous transfer mode based aggregation systems and customer devices; and high-bit-rate digital subscriber line, asymmetric digital subscriber line, and other technologies to deliver business and residential services. ADTRAN, Inc. was founded in 1985 and is headquartered in Huntsville, Alabama.