ADTRAN Reports Wider-Than-Expected Q3 Loss on Lower Revenues

ADTRAN Holdings Inc. ADTN reported soft third-quarter 2024 results, wherein both the adjusted earnings and revenues fell short of the respective Zacks Consensus Estimate.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company recorded a top-line contraction year over year due to lackluster demand trends in the Network Solutions business. Macroeconomic challenges and inventory corrections continued to impact customer spending during the quarter. However, management focuses on cost optimization and enhancing its operating model to ensure higher long-term shareholder returns.Net IncomeOn a GAAP basis, the company incurred a net loss of $31.2 million or 36 cents per share compared with $78.2 million or $1.00 per share in the year-ago quarter. Despite lower sales, a decline in costs of revenues and operating expenses led to the bottom-line improvement.Non-GAAP net loss was $6.7 million or 5 cents per share compared with $13.9 million or 18 cents per share in the year-ago quarter. The loss was wider than the Zacks Consensus Estimate of 2 cents.ADTRAN Holdings, Inc. Price, Consensus and EPS Surprise ADTRAN Holdings, Inc. price-consensus-eps-surprise-chart | ADTRAN Holdings, Inc. QuoteRevenuesNet sales during the quarter declined to $227.7 million from $272.3 million in the prior-year quarter, owing to weak demand trends. Revenues came above the mid-point of the company’s guidance range. However, the top line missed the consensus estimate of $229 million.Network Solutions contributed $181.5 million in revenues compared with $228.6 million in the prior-year quarter. The persistence of an unfavorable macroeconomic environment and inventory adjustments constrained the capex spending from customers. However, Services and Support revenues improved to $46.2 million from the year-earlier quarter’s tally of $43.8 million.Other DetailsGross margin on a GAAP basis was 37.4%, up from 27.3% in the year-ago quarter. Operating loss was $24 million compared with the year-ago quarter’s tally of $89.3 million.Cash Flow & LiquidityIn the first nine months of 2024, ADTRAN generated $98.5 million of cash from operating activities against a cash utilization of $29.3 million in the prior-year period. As of Sept. 30, 2024, the company had $88.5 million in cash and cash equivalents and $32 million of deferred compensation liability.OutlookFor the fourth quarter of 2024, management anticipates net sales in the range of $230-$245 million, with non-GAAP operating margin trending between 0% and 4%.ADTN’s Zacks RankADTRAN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming ReleasesLight and Wonder LNW is scheduled to release third-quarter 2024 earnings on Nov. 12. The Zacks Consensus Estimate for earnings is pegged at $1.11 per share, indicating growth of 37% from the year-ago figure.AST SpaceMobile, Inc. ASTS is scheduled to release third-quarter earnings on Nov. 14. The Zacks Consensus Estimate for earnings is pegged at a loss of 18 cents per share, indicating growth of 21.74% from the year-ago reported figure.The company delivered an average earnings surprise of 26.32% in the last reported quarter.Keysight Technologies, Inc. KEYS is scheduled to release third-quarter earnings on Nov. 19. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating a decline of 21.1% from the year-ago reported figure.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ADTRAN Holdings, Inc. (ADTN): Free Stock Analysis Report Keysight Technologies Inc. (KEYS): Free Stock Analysis Report AST SpaceMobile, Inc. (ASTS): Free Stock Analysis Report Light & Wonder, Inc. (LNW): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks