ADTRAN Reports Q3 Preliminary Revenues Below Estimates
Portfolio Pulse from Nabaparna Bhattacharya
ADTRAN Holdings, Inc. (NASDAQ:ADTN) reported Q3 preliminary results, with revenue at $272.3 million, below the prior guidance range of $275 million-$305 million and analysts' consensus estimate of $288.18 million. The strengthened U.S. dollar negatively impacted revenue generated outside of the U.S. The company's Q3 preliminary GAAP operating margin was -30.2% and non-GAAP operating margin was -1.9%. ADTRAN added new customers in Europe and the U.S. in Q3, but expects customers to manage their inventories conservatively in Q4 due to the changed economic environment.
October 17, 2023 | 9:44 am
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ADTRAN's Q3 revenue fell below estimates, which could negatively impact investor sentiment. The company's operating margins were also negative, indicating potential financial difficulties. However, the addition of new customers could provide some positive momentum.
ADTRAN's lower-than-expected Q3 revenue and negative operating margins could lead to a decrease in its stock price in the short term. The company's expectation of conservative inventory management by customers in Q4 due to the changed economic environment could further impact its future earnings. However, the addition of new customers in Q3 could provide some positive momentum.
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