Adtran Holdings (NASDAQ:ADTN) saw its stock rise another 2.9% in Thursday’s premarket session, extending the 9.2% jump from the day before. The rally followed the company’s release of stronger-than-expected preliminary revenue for the second quarter.
Analysts at Needham remain upbeat on the company’s trajectory. Ryan Koontz, a Needham analyst, suggested that Adtran could deliver third-quarter guidance that surpasses Wall Street expectations. “With a new CFO at the helm and past a financial restatement, we believe the company is focused on simplifying its pitch and balance sheet through debt paydowns and real estate sales,” Koontz noted.
The company recently brought in Timothy Santo as its new chief financial officer in March. Santo previously held leadership roles at GE Capital and is seen as instrumental in steering Adtran’s financial strategy through a period of transition.
Koontz also said his industry checks point to robust broadband market conditions in both the U.S. and Europe—key regions for Adtran’s business. Of the four broadband-related stocks he follows, he views Adtran as the strongest heading into earnings season.
The company is expected to publish its full Q2 results in early August.
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