ADTRAN Reports Second Quarter Fiscal Year 2023 Earnings Results on June 30, 2023
August 14, 2023
🌥️Earnings Overview
ADTRAN ($NASDAQ:ADTN) reported total revenue of USD 327.4 million for the second quarter of fiscal year 2023, a significant 90.3% increase year-over-year. In contrast to the previous year’s net income of USD 2.1 million, the reported net income for the quarter was USD -33.3 million.
Share Price
On June 30, 2023, ADTRAN reported its second quarter earnings results for fiscal year 2023. On the day news was released, ADTRAN’s stock opened at $7.1 and closed at $7.3, representing a decrease of 19.2% from its prior closing price of $9.0. The decline was attributed to investors’ uncertainty regarding the company’s ability to achieve its goals and the broader market downturn. The company’s less-than-expected earnings and guidance for the upcoming quarters also caused its stock to fall.
The company attributed the decrease in net income to higher expenses related to its investments in innovation and growth strategies. ADTRAN indicated that the third quarter guidance was consistent with expectations for the ongoing fiscal year. Despite the challenges faced by ADTRAN, the company remains optimistic about its future prospects and expects to continue to drive growth and profitability in fiscal year 2023. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Adtran. More…
| Total Revenues | Net Income | Net Margin |
| 1.35k | -70.85 | -4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Adtran. More…
| Operations | Investing | Financing |
| -74.47 | 33.58 | 129.69 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Adtran. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.88k | 655.01 | 9.95 |
Key Ratios Snapshot
Some of the financial key ratios for Adtran are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 41.8% | -7.1% | -11.7% |
| FCF Margin | ROE | ROA |
| -8.0% | -12.3% | -5.2% |
Analysis
GoodWhale recently conducted an analysis of ADTRAN‘s wellbeing, and according to our Star Chart, ADTRAN is classified as a ‘cheetah’, a company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company might be attractive to investors who are looking for higher returns on their investments, as well as those who are looking for short-term capital gains, as the stock price may see more volatility. However, ADTRAN has a low health score of 3/10 considering its cashflows and debt, which means it is less likely to safely ride out any crisis without the risk of bankruptcy. Moreover, it is strong in asset, dividend, growth, and medium in profitability. Therefore, investors should carefully consider the risks involved before investing in ADTRAN. More…
Peers
The company competes with Communications Systems, Inc., Itron, Inc., and Netronix, Inc. in the market for telecommunications and networking equipment. Adtran, Inc. has a strong history of innovation and customer service. The company’s products are used by major telecommunications and networking service providers around the world. Adtran, Inc. is a publicly traded company on the NASDAQ stock exchange under the ticker symbol ADTN.
– Communications Systems Inc ($NASDAQ:ITRI)
Itron is a technology company that provides energy and water resources management solutions. The company has a market cap of $1.98 billion and a return on equity of -7.96%. Itron’s products and services are used by utilities to manage electricity, gas, and water resources. The company’s products include meter data management systems, demand response systems, and smart grid applications. Itron’s customers include utilities, municipalities, and commercial and industrial customers.
– Itron Inc ($TPEX:6143)
Netronix Inc. is a fabless semiconductor company that designs, develops and markets mixed-signal semiconductor solutions for the networking, communications, storage and consumer electronics markets. The company’s products include Ethernet transceivers, network switches, storage controllers and interface chips. Netronix Inc. has a market cap of 4.81B as of 2022 and a return on equity of 12.72%. The company’s products are used in a variety of applications, including Ethernet, storage, and consumer electronics.
Summary
ADTRAN Inc. saw a huge increase in total revenue for the second quarter of its fiscal year 2023, reaching USD 327.4 million, a 90.3% increase from the previous year. Despite this impressive growth, the company posted a net income of USD -33.3 million, a significant decrease from the previous year’s net income of USD 2.1 million. As a result, the stock price moved down when the earnings results were reported on June 30th 2023. Investors should consider this drastic change in profitability when making decisions about investing in ADTRAN.
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