ADTRAN, Inc. (NASDAQ:ADTN) has issued earnings estimates for the fourth quarter of 2017. Additionally, the company has lowered guidance for revenues in the same quarter.
Revenues for the to-be-reported quarter are estimated at $125 million. Previous guidance for the same was in the range of $155-$165 million. Whereas earnings per share (adjusted) are anticipated at around a penny.
The Zacks Consensus Estimate for fourth-quarter top line stands at $162.10 million while the same for the bottom line is pegged at 15 cents per share.
Additionally, the company expects revenues for the first quarter of 2018 at around the same range of its fourth-quarter 2017 revenues.
Per ADTRAN’s CEO Tom Stanton, the company’s performance this quarter has been greatly hindered by a merger-related review and slowdown in its spending at a domestic Tier 1 customer. The company hopes that the review will be completed within 60-90 days, after which, its capital plans will be finalized. Moreover, ADTRAN claims that recent awards and trials in Tier 1 customer accounts, both domestically as well as abroad, are likely to strengthen its financials going forward.
The company is scheduled to report fourth-quarter 2017 earnings on Jan 17.
Zacks Rank & Key Picks
ADTRAN carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Computer and Technology sector are Analog Devices, Inc. (NASDAQ:ADI) , Analogic Corporation (NASDAQ:ALOG) and ANSYS, Inc. (NASDAQ:ANSS) . While Analog Devices sports a Zacks Rank #1 (Strong Buy), Analogic and ANSYS carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Analog Devices, Analogic and ANSYS have rallied more than 14%, 17% and 21%, respectively, in the last six months.
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