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
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
