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ADTRAN (ADTN) Beats Q1 Earnings and Revenue Estimates

Communication network solution provider ADTRAN Inc. ADTN reported first-quarter 2016 results wherein both the top and the bottom line surpassed the Zacks Consensus Estimate.

In the reported quarter, GAAP net income came in at $5 million or 10 cents a share compared with $3.3 million or 6 cents in the year-ago quarter. Meanwhile, quarterly adjusted earnings per share of 14 cents surpassed the Zacks Consensus Estimate of 8 cents. Total revenue of $142.2 million was down 0.4% year over year but above the consensus estimate of $141 million.

Quarterly gross margin came in at 46.3% compared with 45.9% in the prior-year quarter. Meanwhile, operating income in the reported quarter totaled $5.5 million compared with $1.9 million in the last-year quarter. Quarterly operating margin was 3.9% compared with 1.4% in the prior-year quarter.

At the end of the first quarter of 2016, ADTRAN generated $15.7 million of cash from operations compared with $13 million in the same quarter last year. Free cash flow, at the end of the first quarter of 2016, was $12.5 million compared with $10.6 million a year ago. The company exited the first quarter with $120.9 million of cash and cash equivalents compared with $119 million at the end of 2015.

Notably, the company has declared a cash dividend of 9 cents per share in the first quarter of 2016 which will be paid on May 12, 2016, to shareholders on record as of Apr 28, 2016.

Zacks Ranks & Other Key Picks

ADTRAN currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the sector include SBA Communications Corp. SBAC, Sonus Networks, Inc. SONS and Motorola Solutions, Inc. MSI. SBA Communications and Sonus Networks carry a Zacks Rank #2 (Buy) while Motorola Solutions sports a Zacks Rank #1 (Strong Buy).

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ADTRAN INC (ADTN): Free Stock Analysis Report
 
SBA COMM CORP (SBAC): Free Stock Analysis Report
 
SONUS NETWORKS (SONS): Free Stock Analysis Report
 
MOTOROLA SOLUTN (MSI): Free Stock Analysis Report
 
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