We are upgrading our recommendation on ADTRAN Inc. (ADTN) to Outperform based on strong fundamentals. Fourth quarter earnings strongly outpaced the Zacks Consensus Estimate and year-ago results on record high revenue.
ADTRAN’s three growth products are constantly delivering record revenues and are expected to doing so continuously in future. We believe the company is well positioned for strong growth in 2011 driven by mobile backhaul demand, TA 5000 rollouts, market share gains, new product offerings, continued Internet-working momentum, strong international ramp and growing service revenue.
Additionally, ADTRAN has a strong balance sheet with no long-term debt and is committed to return value to shareholders through dividends. These positive factors will offset the major risk pertaining to the company’s largest customer, Qwest.
ADTRAN INC (ADTN): Free Stock Analysis Report
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