How many times do you see a technology stock rally after an earnings warning? An earnings warning from ADTRAN, Inc. (NASDAQ: ADTN) was met with a rally in the stock today. The networking and communications equipment maker lowered its first quarter guidance noting that its forecast reflects its view of very-poor sentiment among capital spending plan makers in communications service providers.
The first quarter sales guidance was taken down to $130 million to $135 million against a consensus estimate of almost $175 million. Earnings were brought down to a range of $0.22 to $0.25 EPS versus estimates of $0.44 EPS. And this stock managed to post a comeback rally? Shares were trading down about 3.2% in early pre-market trading on Thursday.
Morgan Keegan said that sentiment was already weak and it lowered its price target to $31.50 on the stock. Right before the closing bell, ADTRAN shares are up 3.4% at $32.26 on 3.5 million shares. The 52-week trading range is $25.46 to $45.45.
JON C. OGG
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
