Market Overview

Adtran Earnings Preview

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Adtran (NASDAQ: ADTN) releases its next round of earnings this Monday, November 02. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Adtran earnings will be near $0.08 per share on sales of $132.86 million, according to analysts. Adtran reported a per-share loss of $0.06 when it published results during the same quarter last year. Sales in that period totaled $114.09 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Monday, earnings would be up 233.33%. Revenue would be up 16.45% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.01 -0.10 -0.13 -0.06
EPS Actual 0.04 -0.05 -0.07 -0.06
Revenue Estimate 127.92 M 113.64 M 111.56 M 113.97 M
Revenue Actual 128.72 M 114.52 M 115.79 M 114.09 M

Stock Performance

For a full 12 months, the return has risen by 16.35%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Adtran is scheduled to hold the call at 10:30:00 ET and can be accessed here.

 

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Posted-In: Earnings