UBS Cuts Estimates on ADC Telecom
UBS cut its estimates and price targets on ADC Telecommunications (ADCT ) Wednesday, explaining that ADC's quarterly results were lower than expected.
ADC Telecommunications late Tuesday posted 29 cent earnings per share for the three months ending in July compared to 3 cents for the comparable year ago quarter. Analyst Nikos Theodosopoulos said the company's third quarter pro forma earnings per share were 1 cent lower than he expected, among other things.
He also noted ADC's fourth quarter revenue guidance of $315 million to $325 million, which included $15 million in sales from ADC's recently completed acquisition of the privately-held Fiber Optic Network Solutions. UBS says that without this acquisition, ADC would expect to see a sales decline of 2% to 5% during the fourth quarter compared to the third, explained by a slowdown at Verizon (VZ ) and Nextel (NXTP )'s fiber-to-the-premise (FTTP) and Wireless network deployments. (ADC supplies communications infrastructure products to companies like Verizon and Nextel.)