NASDAQ$ADTN

ADTRAN Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

ADTRAN Holdings reported preliminary Q4 2023 financial results with revenue at $225.5 million and sequential improvement in GAAP and non-GAAP operating expenses.

ADTRAN Holdings' preliminary Q4 revenue came in as expected, with non-GAAP profitability at the upper end of guidance, driven by gross margin improvements and lower operating expenses. Revenues remained challenging due to the macroeconomic environment and elevated customer inventories, but the fundamental demand landscape is believed to remain unchanged.

  • Preliminary Q4 revenue was $225.5 million, aligning with the midpoint of guidance.
  • GAAP and non-GAAP operating expenses saw sequential improvements, with GAAP operating expenses decreasing by 7.6% and non-GAAP operating expenses decreasing by 15.1%.
  • Preliminary GAAP gross margin for the quarter was 34.8%, improving by 483 bps year-over-year and 754 bps quarter-over-quarter.
  • Preliminary non-GAAP operating margin for the quarter was negative 1.4%, at the upper end of the guidance range.

Headline financials

Total Revenue

$225M

Previous: $358M-37.1%
EPS (adj)

-$1.09

Previous: $0.12-1008.3%
Capital Expenditures

-$9.45M

Previous: $6.93M-236.3%
Free Cash Flow

-$33.1M

Previous: -$8.43M-292.4%
Net Income

-$110M

Previous: $35M-414.5%
Operating Income

-$37.6M

Previous: -$32.9M-14.4%
Gross Profit

$78.5M

Previous: $107M-26.9%
R&D Expense

$51.1M

No prior period
Stock-Based Comp

$3.79M

Previous: $12.4M-69.5%

Revenue & EPS history

ADTRAN · Revenue · Quarterly

$225M

Q4 2023-37.1%vs Q4 2022
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

The company expects to transform into a more streamlined and efficient company through cost improvement measures, which will position it well when spending returns to normal levels. Service providers are expected to continue expanding their fiber footprint and enhancing bandwidth, necessitating global infrastructure buildouts.

Tailwinds

  • Continued gross margin improvements
  • Lower operating expenses
  • Fundamental demand landscape remains unchanged
  • Service providers continue to pursue fiber footprint expansion
  • Enhanced bandwidth needs drive infrastructure buildouts

Headwinds

  • Revenues continued to remain challenging
  • Macroeconomic environment
  • Elevated customer inventories
  • Preliminary financial measures are subject to internal controls and procedures
  • Potential for material variation between actual and preliminary results

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 Q4 2023

Historical avgQ4 2023

-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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