Morgan Keegan Comments On Impressive 1Q11 Results For Adtran

According to Morgan Keegan, Adtran (NASDAQ: ADTN) first pass Q1:11 results continue to impress.

Morgan Keegan reported that ADTRAN reported sales of $165.5 mm, above its $163.2 mm and the Street's $162.8 mm, coming in flat seq. and in line with its prior forecast for “flat to slightly down sequentially”. GAAP earnings per share of $0.52 were well above its $0.45 and the Street's $0.46. “Growth products rose 4% seq. while legacy dropped 6%, compared to our estimates for a 2% increase and 6% decrease respectively. YoY, Broadband rose 42%, Optical rose 86%, and Internetworking rose 48% compared to our estimates for increases of 43%, 77%, and 41% respectively. We maintain our Market Perform rating on ADTRAN; results continue to impress and gives us confidence that ADTRAN's pipeline remains healthy. We expect estimates rise following the conference call and believe strength continues to be broad-based and not just government stimulus.”

Adtran closed yesterday at $41.60.