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Telecommunications equipment provider Adtran (ADTN) - Get ADTRAN, Inc. Report is showing momentum heading into reporting first-quarter earnings early Tuesday. Can it continue?

At around $20, Adtran shares are up 14% for the year to date and close to 5% for the past 52 weeks.

For the first quarter, analysts, on average, expect Adtran to earn 8 cents per share on revenue of $141.07 million, compared to the year-ago quarter when earnings were 6 cents on $142.84 million in revenue. For the year earnings are projected to rise 88% year over year to 68 cents per share, while full-year revenue of $624.83 million would mark a 4% rise from the year-ago quarter.

In the past month, analysts' estimates on Adtran's earnings for the just-ended quarter jumped to 8 cents from 4 cents a share. The consensus estimate for the year has risen to 68 cents from 56 cents per share.

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Why are estimates climbing? Adtran's revenue has begun to grow and the company is posting better profit margins thanks to lower operating expenses. This combination, which has helped Adtran to beat analyst's earnings estimates in 12 straight quarters, has helped sustain improved operating income.

In addition, the company has seen customers increasing their spending to upgrade their network infrastructure. Analysts at Cowen, for instance, recently upgraded the stock to market perform, citing Adtran's improving market position, product mix of next-generation hardware and the buildout of AT&T's (T) - Get AT&T Inc. Report network strong growth catalysts.

So with all that going for it, Adtran is a buy.

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