Amid worries about telecommunications capital spending, ADC Telecommunications (Nasdaq: ADCT) said Thursday it will meet or exceed estimates for its fourth quarter. ADC also sees more than $1 billion in sales for the quarter.
ADC is just the latest telco gear maker to issue a bullish outlook. On Wednesday, Nortel (NYSE: NT) reiterated its previous revenue and earnings targets in a move to stabalize its stock. JDS Uniphase (Nasdaq: JDSU) also recently issued a bullish outlook. However, with carriers such as WorldCom (Nasdaq: WCOM) struggling, concerns about telecommuncations equipment spending persist.
ADC said sales will top $1 billion in the fourth quarter, up 60 percent from sales of $634 million in the same quarter a year ago. Earnings will "meet or exceed" First Call Corp. estimates calling for a profit of 17 cents a share and 46 cents a share for the year.
The company said the projections didn't include charges, which will total roughly 68 cents a share to 70 cents a share for the fiscal year.
"Despite recent market concerns, we remain confident that we can achieve our long-term goals for annual sales growth at 25 percent to 30 percent with earnings per share growth at the same or higher rate, before non-recurring credits and charges," said ADC CEO William J. Cadogan in a statement.
ADC reports earnings Nov. 28.>