ADTRAN Holdings, Inc. ADTN reported healthy second-quarter 2022 results, wherein both the bottom and the top line beat the Zacks Consensus Estimate.
On a GAAP basis, net income in the June quarter was $2.1 million or 4 cents per share compared with $5.1 million or 10 cents per share in the prior-year quarter. The year-over-year decline despite higher revenues was primarily due to higher cost of revenues and loss on net investments.
Non-GAAP net income was $9.7 million or 19 cents per share compared with $8.1 million or 16 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 12 cents.
ADTRAN Holdings, Inc. Price, Consensus and EPS Surprise
ADTRAN Holdings, Inc. price-consensus-eps-surprise-chart | ADTRAN Holdings, Inc. Quote
Quarterly total revenues grew to $172 million from $143.2 million in the prior-year quarter, driven by the increasing demand for ADTRAN’s network solutions and fiber broadband products. The top line beat the consensus estimate of $170 million. The company is experiencing solid demand, underscored by strong bookings in the quarter.
Revenues from Network Solutions were $156 million compared with $125.4 million in the year-ago quarter. ADTRAN’s end-to-end solutions simplify the deployment of fiber-based broadband services and provide a better customer experience. The company recorded healthy demand trends driven by the accelerated expansion of fiber-to-the-home networks, upgrades to in-home WiFi connectivity, and the adoption of cloud-based automation tools. The solid quarterly performance was further buoyed by improved customer diversification and end-to-end fiber broadband solutions. However, Services and Support revenues were $16 million, down from $17.8 million.
Total cost of sales increased from $80.6 million to $109.5 million. GAAP gross profit came in at $62.5 million compared with $62.7 million in the prior-year quarter for respective margins of 36.3% and 43.8%. Operating income in the quarter was $8.1 million compared with $3.9 million in the year-ago quarter.
Cash Flow & Liquidity
During the first six months of 2022, ADTRAN used $5.9 million of cash in operating activities against $18.2 million cash flow generated in the prior-year period. As of Jun 30, 2022, the company had $43.4 million in cash and cash equivalents with $26 million of deferred compensation liability.
ADTN currently has a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lemonade, Inc. LMND, sporting a Zacks Rank #1, delivered an earnings surprise of 4.6%, on average, in the trailing four quarters. Over the past year, the stock has fallen 72.2%.
Earnings estimates for the current year have moved down 41.7% since August 2021. Lemonade’s primary strategy is to provide insurance products in the United States and Europe.
Celsius Holdings, Inc. CELH sporting a Zacks Rank #1, is another key pick for investors. It delivered an earnings surprise of 200% in the previous quarter and a stellar earnings surprise of 206.25%, on average, in the trailing four quarters. Celsius develops, markets, distributes and sells functional drinks and liquid supplements in North America, Europe, Asia and internationally.
Earnings estimates for the current year have moved up 23.7% since August 2021.
Delek US Holdings, Inc. DK sports a Zacks Rank #1. The Zacks Consensus Estimate for Delek’s current-year earnings has been revised 3239.1% upward since August 2021.
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