Latest news with #ADTN
Globe and Mail
06-08-2025
- Business
- Globe and Mail
Adtran (ADTN) Q2 Revenue Jumps 17%
Key Points Revenue (GAAP) exceeded expectations at $265.1 million in Q2 2025, up 17% year over year (GAAP). Non-GAAP operating margin rose to 3.0%, from 0.6% in Q2 2024. These 10 stocks could mint the next wave of millionaires › Adtran (NASDAQ:ADTN), a provider of fiber networking equipment and solutions for communications networks, released its second quarter 2025 results on August 5, 2025. The company delivered revenue (GAAP) of $265.1 million in Q2 2025—well above both management's guidance and analyst GAAP estimates of $260.2 million. Non-GAAP operating margin improved to 3.0%, and Free cash flow (non-GAAP) increased from $3.9 million in Q2 2024 to $18.3 million. However, adjusted earnings per share (non-GAAP) were break-even, and profitability remains a work in progress, despite year-over-year improvement. The quarter showed clear top-line outperformance, as GAAP revenue of $265.1 million exceeded the analysts' estimate by approximately 1.9%, but sustainable profit levels and margin expansion are areas to watch. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $(0.00) N/A $(0.13) 100.0 % Revenue (GAAP) $265.1 million $260.2 million $226.0 million 17.3 % Gross Margin (Non-GAAP) 41.4 % 41.8 % (0.4 pp) Operating Margin (Non-GAAP) 3.0 % 0.6 % 2.4 pp Free Cash Flow (Non-GAAP) $18.3 million $3.9 million 369.2 % Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report. What Adtran Does and Where It's Focused Adtran builds and supplies hardware and software to companies and telecom carriers that need high-speed, fiber-optic-based network infrastructure. Its main products range from access platforms that connect homes and businesses to fiber grids, to tools that help manage and secure growing network traffic. Its recent focus revolves around becoming a leader in fiber networking, expanding into international markets, and tightening operational efficiency. Critical to success are Adtran's innovation pipeline—in other words, how quickly and effectively it develops new products—and its ability to win share from competitors. The company also emphasizes investment in research and development, which supports future product launches and maintains technical differentiation in a crowded field. Quarter in Review: Revenue Beat, Mixed Margins, and Cash Progress Results exceeded both internal guidance and outside expectations, with total revenue (GAAP) up 17% year-over-year compared to Q2 2024. The Network Solutions business—which focuses on fiber networking products—saw notable growth, rising 22.5% from $179.2 million in Q2 2024 to $219.5 million (GAAP). However, the Services & Support segment (GAAP) declined 2.6% to $45.6 million compared to Q2 2024, capturing share in what management describes as 'key areas,' even though details by region or customer group were not provided. Margins (GAAP and non-GAAP) moved in a positive direction on a year-over-year basis, though the picture is not uniformly strong. Non-GAAP operating margin improved to 3.0%, compared with 0.6% in the prior-year quarter, while non-GAAP gross margin held above 41%. Compared with the prior quarter, though, both GAAP and non-GAAP gross and operating margins fell slightly, suggesting some pressure on profitability despite better sales. With cost savings from its Business Efficiency Program now largely realized. Operationally, the company made progress in generating cash. Operating cash flow (GAAP) was $32.2 million, up from $19.9 million in Q2 2024. Free cash flow (non-GAAP) jumped to $18.3 million from $3.9 million in Q2 2024. Cash and equivalents (GAAP) were $106.3 million as of June 30, 2025, reflecting stronger cash generation on growing sales. Research and development spending (GAAP) came to $51.9 million, down from $60.4 million in Q2 2024. However, Selling, general, and administrative costs (GAAP) were stable year over year. Fiber Networking Leadership and Competition Adtran's main product families include fiber access platforms—hardware systems that deliver high-speed fiber connections to homes and businesses. As stated by CEO Tom Stanton: 'We delivered strong Q2 2025 results with GAAP revenue growth that exceeded expectations.' The focus on network core-to-edge solutions positions the company competitively as bandwidth needs rise with trends like cloud adoption and artificial intelligence. Competitive pressure remains intense, with larger network equipment providers such as Nokia, Huawei, and Ciena also vying for market dominance. Maintaining non-GAAP gross margins above 40% suggests the company continues to compete on technology rather than price alone. Management reported that business efficiency initiatives are now largely complete. The company reported ongoing material weaknesses in its internal controls for financial reporting. Adtran does not currently pay a dividend. Looking Ahead: Guidance and Key Areas for Investors Management provided a financial outlook, guiding revenue to a range of $270.0 million to $280.0 million. At the midpoint, this projects sequential growth of 3.7%. Non-GAAP operating margin is expected in the 3.0% to 7.0% range, signaling intent to build on the improvement seen this period. However, no additional specifics on bookings or detailed segment expectations were shared. Investors should monitor whether margin progress continues, as both gross and operating margins (GAAP and non-GAAP) softened slightly from the previous quarter. Areas to watch in the months ahead include the sustainability of Network Solutions growth, R&D spending levels, and whether the company can make further headway toward profitability. Management remains focused on increasing efficiency and broadening its fiber portfolio to support long-term strategic goals. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,039%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of August 4, 2025 JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Yahoo
08-05-2025
- Business
- Yahoo
ADTRAN Holdings: Q1 Earnings Snapshot
HUNTSVILLE, Ala. (AP) — HUNTSVILLE, Ala. (AP) — ADTRAN Holdings, Inc. (ADTN) on Wednesday reported a loss of $10.6 million in its first quarter. On a per-share basis, the Huntsville, Alabama-based company said it had a loss of 13 cents. Earnings, adjusted for one-time gains and costs, were 3 cents per share. The networking equipment maker posted revenue of $247.7 million in the period. For the current quarter ending in June, ADTRAN Holdings said it expects revenue in the range of $247.5 million to $262.5 million. ADTRAN Holdings shares have fallen roughly 5% since the beginning of the year. The stock has increased 47% in the last 12 months. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on ADTN at Sign in to access your portfolio
Yahoo
27-02-2025
- Business
- Yahoo
Adtran Holdings Inc (ADTN) Q4 2024 Earnings Report Preview: What To Look For
Adtran Holdings Inc (NASDAQ:ADTN) is set to release its Q4 2024 earnings on Feb 27, 2025. The consensus estimate for Q4 2024 revenue is $237.95 million, and the earnings are expected to come in at $0.10 per share. The full year 2024's revenue is expected to be $917.68 million and the earnings are expected to be $-4.11 per share. More detailed estimate data can be found on the Forecast page. Warning! GuruFocus has detected 7 Warning Signs with ADTN. Revenue estimates for Adtran Holdings Inc (NASDAQ:ADTN) have increased from $917.11 million to $917.68 million for the full year 2024, and declined from $1.02 billion to $1.02 billion for 2025 over the past 90 days. Earnings estimates for Adtran Holdings Inc (NASDAQ:ADTN) have remained flat at $-4.11 per share for the full year 2024 and at $0.37 per share for 2025 over the past 90 days. In the previous quarter of 2024-09-30, Adtran Holdings Inc's (NASDAQ:ADTN) actual revenue was $227.70 million, which beat analysts' revenue expectations of $226.92 million by 0.35%. Adtran Holdings Inc's (NASDAQ:ADTN) actual earnings were $-0.63 per share, which missed analysts' earnings expectations of $-0.20 per share by -215%. After releasing the results, Adtran Holdings Inc (NASDAQ:ADTN) was up by 2.26% in one day. Based on the one-year price targets offered by 5 analysts, the average target price for Adtran Holdings Inc (NASDAQ:ADTN) is $12.00 with a high estimate of $15.00 and a low estimate of $9.00. The average target implies an upside of 14.94% from the current price of $10.44. Based on GuruFocus estimates, the estimated GF Value for Adtran Holdings Inc (NASDAQ:ADTN) in one year is $8.08, suggesting a downside of -22.61% from the current price of $10.44. Based on the consensus recommendation from 7 brokerage firms, Adtran Holdings Inc's (NASDAQ:ADTN) average brokerage recommendation is currently 2.4, indicating an "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. Sign in to access your portfolio
