Adtran Q3 Crushes Ests; Sees Q4 Revs Down From Q3 (Updated)

Adtran (ADTN), a provider of networking hardware, late Tuesday posted better than expected Q3 results.

For the quarter, the company reported revenue of $163 million, with profits of 50 cents a share, nicely ahead of the Street consensus at $156 million and 44 cents.

ADTN this morning is up $2.23, or 6.3%, to $37.75.

Update: On a conference call with the Street this morning, Adtran said it expects Q4 revenue to be down sequentially in the mid-single-digit percentage range. Operating expenses are expected to be flat. If revenue was down 5%, that would imply $154.9 million, ahead of the Street at $148.9 million.� One other potential factors noted on the call that could be affecting the stock is that inventory in the quarter was up 10% sequentially from Q3. Nonetheless, the stock has reversed course and is now trading lower: ADTN is now off $2.05, or 5.8%, to $33.47.