ADTRAN Launches Global Services Offering To Help Customers

Networking equipment maker ADTRAN, Inc. (NASDAQ:ADTN) recently launched a new Global Services Portfolio in order to help broadband service providers deliver competitive and high-quality customer experience. The company’s leading-edge portfolio comprises turnkey network implementation, maintenance, professional, cloud and managed services.

While strengthening ADTRAN’s footprint in service capabilities, the move is aimed at offering service providers an advanced ecosystem of services. The portfolio provides a comprehensive set of tools to enable service providers to outsource the build and management of networks. By leveraging its competence, tools and software with an innovative portfolio of network service offerings, ADTRAN plans to help customers expand competitive service capabilities.

The Huntsville, AL-based company is optimizing its customer, geographic and product diversity momentum as communication service providers continue to scale-up their network capabilities. It is well-positioned to benefit from the increasing customer engagements across its portfolio of software-defined access, 10G solutions and G.fast products. Further, its global strategy of diversification across geographies and markets bodes well for future growth.

In fourth-quarter 2019, ADTRAN’s revenues were $115.8 million compared with $140.1 million in the year-ago quarter. The deterioration was primarily due to lower product sales, which tumbled 17.7% year over year to $96.2 million. Sales from services were $19.6 million, down 15.7%. While the U.S. market remains challenging, the company continues to see activity building around its 10G PON and fiber extension solutions across all geographies.

ADTRAN’s revenues are diverse and well balanced, with contributions across North America, LATAM, EMEA and Pacific Rim regions. Its broad portfolio of next-generation solutions continues to gain traction with increasing number of customers in an expanding range of market segments. The company’s network implementation services provide speed and scale to build fiber and fixed wireless networks. This, in turn, enables service providers to reach more customers and expand their competitive edge.

ADTRAN’s maintenance services offer access to expert engineers who take the lead in maintaining network equipment and software. Professional services leverage its expertise in Gigabit technology and converged access solutions to provide consulting services and solution integration. This allows service providers to transform their networks, improve processes and streamline operations.

The company has a long-term earnings growth expectation of 5%. It surpassed earnings estimates thrice in the trailing four quarters and missed the same in remaining one quarter, delivering a positive surprise of 69.9%, on average. The stock has lost 1.5% against the industry’s growth of 3.2% in the past three months.



ADTRAN currently has a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader industry are Motorola Solutions, Inc. (NYSE:MSI) , Qualcomm Incorporated (NASDAQ:QCOM) and PCTEL, Inc. (NASDAQ:PCTI) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Motorola has trailing four-quarter positive earnings surprise of 6.6%, on average.

Qualcomm has trailing four-quarter positive earnings surprise of 10%, on average.

PCTEL has trailing four-quarter positive earnings surprise of 150.6%, on average.

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