UBS Maintains a 'Buy' on ADTRAN (ADTN); Revenues Beat, Operating Margins to Comeback in 1Q12
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Price: $7.77 -1.15%
Rating Summary:
12 Buy, 13 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
12 Buy, 13 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS maintains a 'Buy' on ADTRAN (NASDAQ: ADTN) price target lowered from $48 to $40.
UBS analyst says, "3Q GM Pressure Due to Services Mix and Competitive Pricing - Revenues beat due to strength in Broadband Access and Internetworking while GM was pressured primarily by the higher mix of services and additionally by competitive pricing and expediting. The pricing action probably contributed to Calix (Nasdaq: CALX) negative preannounce as they likely lost share at CentryLink (NYSE: CTL) or Frontier (NYSE: FTR). 4Q guide below street ests due to a customer inventory issue possibly connected to the pricing action."
"We are lowering our 4Q and FY12 EPS estimates on the back of lower revenue growth and 4Q operating mgn pressure as the company continues to invest in the business, with more active opex mgmt flowing through in FY12 and OMs back up to ~27%. We now estimate 4Q/FY12 EPS at $0.45/$2.23 (vs $0.54/$2.28 prior)."
For more ratings news on ADTRAN click here and for the rating history of ADTRAN click here.
Shares of ADTRAN closed at $29.56 yesterday.
UBS analyst says, "3Q GM Pressure Due to Services Mix and Competitive Pricing - Revenues beat due to strength in Broadband Access and Internetworking while GM was pressured primarily by the higher mix of services and additionally by competitive pricing and expediting. The pricing action probably contributed to Calix (Nasdaq: CALX) negative preannounce as they likely lost share at CentryLink (NYSE: CTL) or Frontier (NYSE: FTR). 4Q guide below street ests due to a customer inventory issue possibly connected to the pricing action."
"We are lowering our 4Q and FY12 EPS estimates on the back of lower revenue growth and 4Q operating mgn pressure as the company continues to invest in the business, with more active opex mgmt flowing through in FY12 and OMs back up to ~27%. We now estimate 4Q/FY12 EPS at $0.45/$2.23 (vs $0.54/$2.28 prior)."
For more ratings news on ADTRAN click here and for the rating history of ADTRAN click here.
Shares of ADTRAN closed at $29.56 yesterday.
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