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NEW YORK (TheStreet) -- With better-than-expected results released from Ciena (CIEN) - Get Ciena Corporation Report and Cisco (CSCO) - Get Cisco Systems, Inc. Report, there is some evidence that ISPs and telecommunication companies have begun to spend more money on networking gear -- and that bodes well for Adtran (ADTN) - Get ADTRAN, Inc. Report.

Adtran, which delivers voice, data and video services to corporate customers and to mobile network cell sites, will report second-quarter earnings Tuesday after the closing bell. But because of weak spending from the likes of Verizon Communications (VZ) - Get Verizon Communications Inc. Report and AT&T (T) - Get AT&T Inc. Report -- which the Huntsville, Ala.-based Adtran relies on for a sizable fraction of its business --revenue and profits have been hard to come by.

For the quarter that ended in June, Adtran is projected to earn 7 cents a share on revenue of $153 million, translating to declines of 73% and 13%, respectively. For the full year ending in December, earnings are projected to decline 38% to 49 cents a share, while revenue is projected to decline 4% to $605 million.

These projections, which have worsened in the past three months, reflect the ongoing struggles of the entire sector, not just Adtran. But its stock, which is down some 24% on the year, has been one of the hardest hit. If you've held ADTN for the past twelve months, you're down 25%.

But Adtran has made the best of a bad situation, including beating Wall Street's average earnings estimates for 10 straight quarters. And even though first-quarter revenue missed estimates, the company spoke favorably about growth in its European segment, which accounts for 42% of total revenue.

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In other words, it's not time to give up on Adtran, especially with research firm IDC predicts a 13% increase in carrier spending for 2015. Adtran is poised to benefit from a second-half recovery, making its stock even more intriguing as a contrarian play.

And while the shares do have a consensus hold rating and an average price target of $17.50 -- just 5% above current levels -- Adtran's high target of $18 implies 12.5% gains. From my vantage point, selling the stock ahead of Tuesday's results would be a mistake. And regardless of what the report says, holding the shares is still the smart play here.

Why? Based on consensus 2016 earnings estimates of 75 cents a share -- a projected 53% surge above 2015 levels -- ADTN stock should trend higher in the quarters ahead as the company moves towards earnings growth. At that point, investors can expect Adtran, which has about $140 million in net cash on the balance sheet and another $60 million in operating cash flow, to buy back more stock.

In short, Adtran hasn't performed as poorly as its stock price would indicate. And the prospect of improved carrier spending in the second-half of 2015 makes ADTN shares attractive, especially when combined with its 9-cent quarterly dividend that yields 2.20% annually.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.