Adtran Holdings Inc Down 27.01% To $5.35 After Earnings Miss

Adtran Holdings Inc (ADTN) missed earnings projections on 11/6/2023 for Q3 2023.

Adtran Holdings Inc's earnings came in at an EPS loss of $0.14 per share, 56% lower than estimates for an EPS loss of $0.09 per share. The firm's earnings are down 227% since reporting $0.11 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $272.3 million. The Technology company managed to surpass those expectations for its third quarter with revenue of $272.3 million, a positive revenue surprise of $31 thousand (0%). The firm managed negative 20% growth year-over-year due to Adtran Holdings Inc reporting quarterly revenue of $340.7 million in its year-ago quarter. Adtran Holdings Inc achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 27.01% to $5.35 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Adtran Holdings Inc a Bullish Sentiment Rank from InvestorsObserver.

Adtran Holdings Inc has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 15, putting Adtran Holdings Inc in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $6.28 on October 30, 2023 and set a 52-week high on November 18, 2022 at $21.68.

Adtran Incis a provider of networking and communications platforms, software, and services focused on the broadband access market.It operate under two reportable segments: Network Solutions, which includes hardware and software products, and Services & Support, which includes a portfolio of network implementation services, support services, and cloud-hosted SaaS applications that complement product portfolio and can be utilized to support other platforms as well. These two segments span across their three revenue categories: Access & Aggregation, Subscriber Solutions & Experience, and Traditional & Other Products.