Shares of Adtran Holdings have taken a steep decline, falling approximately 20% in morning trading. The telecommunications supplier has warned that the upcoming year is expected to remain challenging as customers closely manage their inventory. Over the past 12 months, the company’s shares have experienced a significant drop of roughly 70%.
Adtran reported second-quarter sales of $327.4 million, which reflects a notable 90% increase compared to last year. However, this fell short of analysts’ expectations of $338.6 million, according to surveys conducted by FactSet. Additionally, Adtran experienced a loss of $33.3 million, or 43 cents per share, marking a significant change from the $2.1 million profit, or four cents per share, recorded the previous year. Adjusted figures showed Adtran breaking even, aligning with analysts’ predictions.
CEO Tom Stanton acknowledged that the second half of 2023 will likely present ongoing challenges due to customers optimizing their inventory and the current macroeconomic environment. Nevertheless, Stanton emphasized that new customer acquisitions remain at near all-time highs.
Adtran plans to host a conference call on Tuesday morning to discuss the quarterly results.
