Adtran Advances on Earnings Beat

Shares jump early after profits top targets by 3 cents a share.
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Adtran (ADTN) - Get Report shares jumped 4% early Tuesday after the networking equipment shop beat Wall Street's first-quarter targets.

The Huntsville, Ala., maker of broadband access gear posted adjusted earnings of 23 cents a share, up from an adjusted profit of 21 cents a share during the same period last year. Analysts were looking for EPS of 20 cents, according to Reuters Research.

Total sales for the first quarter slipped to $110.3 million from $108.6 million for the year-ago quarter. Analysts were looking for revenue of about $106 million.

Adtran widened its gross margin to 59.6% from 59.4% last year.

"First quarter revenues were better than anticipated due to strength in HDSL demand, improving broadband access trends, and ongoing momentum in internetworking product," CEO Tom Stanton said in a press release late Monday.

The company's shares rose $1.11 to $26.10 in premarket trading.