Late last night, Adtran (ADTN) reported first quarter EPS of 29 cents and revenue of $127 million. Both numbers exceeded Wall Street estimates of 26 cents and $121 million.
Net income and sales were up 20% and 15%, respectively, from a year ago.
Much of the growth came from the the telecom equipment maker’s Broadband Access category, which grew 64% in the quarter.
CEO Tom Stanton said Adtran was benefiting “in an environment where carriers and enterprises are selectively accelerating investment to realize benefit from this new era of converged services.�
Shares of Adtran are up 5.7%, or $1.56, this morning to $28.88.
In a report today, CL King analyst Lawrence Harris notes that Adtran is the first of the telecom equipment companies to post first-quarter results. “We anticipate that investors could bid up stocks such as ADC Telecommunications (ADCT) and Tellabs (TLAB), which sell complementary products.”
ADC and Tellabs rose are up 2.6% and 4.7% in the first few minutes of Wednesday trading.
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