Shares of telecommunications equipment company Adtran (ADTN) surged 6.89% on November 8, 2024, after the company reported strong third-quarter results and provided an optimistic outlook driven by growing demand for fiber broadband deployments.
In its Q3 2024 earnings report, Adtran posted a sequential increase in revenue to $227.7 million, along with improvements in gross and operating margins. The company's Network Solutions segment, which accounts for 80% of total revenues, and its Subscriber Solutions segment, which comprises 40% of revenues, both saw solid growth during the quarter.
Adtran's robust performance was fueled by a 10% sequential increase in sales to large service providers, particularly in the EMEA and APAC regions. The company also added 13 new carrier customers for its optical networking solutions, reflecting the growing demand for fiber infrastructure.
Adtran's management expressed optimism about the company's prospects, citing the continued trend toward increased fiber access and optical transport globally as a catalyst for accelerated profitability and cash generation. The company expects revenue to range between $230 million and $245 million in the fourth quarter, with non-GAAP operating margins between 0% and 4%.
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