Needham & Company Maintains a 'Hold' on ADTRAN (ADTN); Slashing Estimates After Q2 Miss
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Price: $7.74 -1.53%
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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Needham & Company maintains a 'Hold' on ADTRAN (NASDAQ: ADTN).
Analyst, Richard Valera, said, "ADTN followed its substantial 1Q miss and guide down with a 2Q miss and another substantial guide down, as it appears that the carrier cap-ex rebound discussed on the 1Q call lasted about a month and now enterprise spending appears to have slowed sharply further compounding the company’s issues. While we think some of the company’s projects with Tier 1 carriers that appear to be caught in cap-ex limbo will ultimately go forward, it appears that currently much of ADTN’s carrier business is not in the 4G/wireless areas that carriers are prioritizing. Given the resulting down y/y organic trajectory of ADTN’s business we find it tough to justify a premium to the current 11x ex-cash multiple the shares currently trade on our 2012 NG EPS."
Valera slashes FY12 EPS estimate from $1.85 to $1.38 and FY13 from $2.34 to $1.69. FY12 revenues cut from $771.5M to $696.4M and FY13 from $908.1M to $791.5M.
For an analyst ratings summary and ratings history on ADTRAN click here. For more ratings news on ADTRAN click here.
Shares of ADTRAN closed at $23.01 yesterday.
Analyst, Richard Valera, said, "ADTN followed its substantial 1Q miss and guide down with a 2Q miss and another substantial guide down, as it appears that the carrier cap-ex rebound discussed on the 1Q call lasted about a month and now enterprise spending appears to have slowed sharply further compounding the company’s issues. While we think some of the company’s projects with Tier 1 carriers that appear to be caught in cap-ex limbo will ultimately go forward, it appears that currently much of ADTN’s carrier business is not in the 4G/wireless areas that carriers are prioritizing. Given the resulting down y/y organic trajectory of ADTN’s business we find it tough to justify a premium to the current 11x ex-cash multiple the shares currently trade on our 2012 NG EPS."
Valera slashes FY12 EPS estimate from $1.85 to $1.38 and FY13 from $2.34 to $1.69. FY12 revenues cut from $771.5M to $696.4M and FY13 from $908.1M to $791.5M.
For an analyst ratings summary and ratings history on ADTRAN click here. For more ratings news on ADTRAN click here.
Shares of ADTRAN closed at $23.01 yesterday.
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