ADTRAN: When Bad Earnings Warnings Are Good (ADTN)
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…
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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
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
