NASDAQ$ADTN

ADTRAN Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

ADTRAN Holdings reported preliminary financial results, showing increased sequential revenue and expanded gross and operating margins.

ADTRAN Holdings, Inc. announced its preliminary unaudited financial results for the third quarter of 2024, featuring sequential revenue growth and margin expansion. The company's revenue reached $227.7 million, surpassing the midpoint of its guidance. Gross and operating margins also improved, with non-GAAP operating margin turning positive. The company anticipates continued revenue growth in Q4 2024.

  • Revenue reached $227.7 million, exceeding the midpoint of guidance.
  • GAAP gross margin was 37.4%, while non-GAAP gross margin was 42.1%, reflecting sequential increases.
  • GAAP operating margin was negative 10.5%, but non-GAAP operating margin was positive 1.1%, both showing sequential improvements.
  • GAAP diluted loss per share was $0.36, and non-GAAP diluted loss per share was $0.05.

Headline financials

Total Revenue

$228M

Previous: $272M-16.4%
EPS

-$0.36

Previous: -$0.14-157.1%
Non-GAAP Gross Margin

42.1%

No prior period
Capital Expenditures

-$48.2M

Previous: -$33.7M-43.1%
Free Cash Flow

-$79.4M

Previous: -$106M+25.4%
Net Income

-$31.2M

Previous: -$72.7M+57.1%
Operating Income

-$24M

Previous: -$89.3M+73.1%
Gross Profit

$85.3M

Previous: $74.2M+14.8%
Cash & Equivalents

$88.5M

Previous: $116M-23.8%
Total Assets

$1.27B

Previous: $1.74B-26.9%
R&D Expense

$51.6M

Previous: $62.8M-17.7%
Stock-Based Comp

$3.62M

Previous: $4.13M-12.2%

Revenue & EPS history

ADTRAN · Revenue · Quarterly

$228M

Q3 2024-16.4%vs Q3 2023
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

ADTRAN · $272M total across 2 segments · Q3 2023

  • Network Solutions
    $229M-25.0%
  • Services & Support
    $43.8M+22.4%

Forward guidance

For the fourth quarter of 2024, the Company expects revenue to be within a range of $230 million to $245 million. Non-GAAP operating margin is expected to be within a range of 0% to 4%.

Tailwinds

  • Revenue expected to be between $230 million and $245 million.
  • Non-GAAP operating margin expected to be between 0% and 4%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-1.9%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-1.4%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+22.0%

Q3 2024

Best reaction

-26.1%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-16.4%-18.4%-5.7%
Q4 2025-6.3%-7.6%+21.0%
Q3 2025-24.1%-23.6%-18.1%
Q1 2025-3.4%+7.7%+1.0%
Q4 2024-0.4%+0.2%-16.1%
Q3 2024+22.0%+32.0%+36.2%
Q2 2024-23.0%-21.4%-14.3%
Q1 2024+13.7%+15.2%+12.9%
Q4 2023+2.1%+0.2%-13.2%
Q3 2023-26.1%-25.5%-16.6%
Q2 2023-19.2%-11.2%-7.5%
Q1 2023+0.6%-4.1%+7.2%
Q4 2022-2.7%+1.9%-12.8%
Q3 2022-1.4%-4.2%-7.1%
Q2 2022-5.3%-2.2%-7.0%
Q1 2022-5.2%-1.6%+8.8%
Q4 2021+4.7%+8.3%+2.8%
Q3 2021+4.2%+12.0%+7.3%
Q2 2021-1.9%+6.7%-7.1%
Q1 2021+3.8%+15.6%+21.1%
Q4 2020-5.4%-1.8%+1.5%
Q3 2020+4.5%+14.0%+19.4%
Q2 2020-5.7%-5.8%-18.7%
Q1 2020+15.7%+6.0%+14.3%
Q4 2019+0.3%-11.4%-14.4%
Q3 2019-8.1%-0.5%-4.2%
Q2 2019-23.0%-27.4%-31.7%
Q1 2019+12.9%+18.7%+10.2%
Q4 2018+15.1%+24.7%+23.9%
Q3 2018-12.0%-19.2%-19.2%
Q2 2018+0.3%+3.1%+2.8%
Q1 2018-3.9%-5.5%-5.1%
Q4 2017-4.3%-13.8%-16.7%
Q3 2017-6.9%-8.5%-12.3%
Q2 2017+7.3%+13.7%+4.9%
Q1 2017+2.9%+2.1%+0.5%
Q4 2016+2.0%-0.4%-2.5%
Q3 2016+10.2%+5.5%+10.2%
Q2 2016-2.9%-8.5%-8.4%
Q1 2016+1.1%
Q4 2015+2.9%
Q3 2015-8.0%
Q2 2015-4.8%
Q1 2015-13.6%
Q4 2014+2.2%
Q3 2014+2.5%
Q2 2014+0.4%
Q1 2014-4.7%
Q4 2013+9.7%
Q3 2013-6.8%
Q2 2013-6.2%
Q1 2013+17.1%
Q4 2012+1.2%
Q3 2012-1.6%
Q2 2012-17.1%
Q1 2012-0.8%
Q4 2008-10.8%
Q4 2011-10.8%
Q3 2011+1.3%
Q2 2011-1.1%
Q1 2010+1.9%
Q1 2011-2.8%
Q4 2010+1.8%
Q3 2009+0.9%
Q3 2010+0.9%
Q2 2009-0.6%
Q2 2010-0.6%
Q4 2009-0.6%

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