ADC Telecommunications (ADCT - option chain) stock is trading lower today after the company posted a fourth-quarter loss last night of $19.8 million, or 20 cents per share, on revenue of $183.9 million. ADCT also forecast a first-quarter adjusted loss of 10 to 0 cents per share on revenue of $250 million to $275 million. Analysts are forecasting a profit of 11 cents per share on revenue of $274 million. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on ADCT.

This morning, ADCT opened at $5.46. So far today the stock has hit a high of $5.93 and a low of $5.35. As of 12:05, ADCT is trading at $5.71, down 93 cents (-14.0%). The chart for ADCT looks bullish and S&P gives ADCT a positive 5 STARS (out of 5) strong buy ranking.

ADC Telecommunications (NASDAQ: ADCT) provides infrastructure equipment used by wireline, wireless, cable, broadcast and enterprise networks. Its systems connect high-speed Internet, data, video and voice services to residential, business and mobile subscribers. The firm also provides network management software and integration services. Ciena (NASDAQ: CIEN), Morgan Stanley (NYSE: MS) and Verizon Communications (NYSE: VZ) are on the company's customer list.

The firm surprised the Street last week, when it reported Q2 EPS of 39 cents and revenues of $403.4 million. Analysts had been looking for 30 cents and $384.8 million. Management also guided Q3 revenues to about $403.4 million ($395.70 million consensus), FY08 EPS to $1.25-$1.33 ($1.21 consensus) and FY08 revenues to $1.52-$1.54 billion ($1.5B consensus). Friedman Billings, Robert W. Baird, UBS and Deutsche Securities subsequently reiterated "buy" ratings on the shares. Lehman Brothers reiterated its "equal weight". All five firms boosted their price targets to the $18.50-$20.00 range.

The efficiency of high-speed Internet service depends on the excellence of its infrastructure components. An Eden Prairie, Minnesota firm is a leading manufacturer of reliable hardware for the industry, serving big name clients in more than 130 countries.

ADC Telecommunications (NASDAQ: ADCT) provides infrastructure equipment used by wireline, wireless, cable, broadcast and enterprise networks. Its systems connect high-speed Internet, data, video and voice services to residential, business and mobile subscribers. The firm also provides network management software and integration services. Ciena (NASDAQ: CIEN), Morgan Stanley (NYSE: MS) and Verizon Communications (NYSE: VZ) are on the company's customer list.

The firm surprised the Street last week when it reported fiscal Q3 EPS of 37 cents and revenues of $346.1 million. Analysts had been looking for 23 cents and $329.1 million. The CEO cited better than expected strength in the connectivity, wireless and services businesses. Management also guided FY07 EPS to $1.11-$1.15 (92 cent consensus) and FY07 revenues to $1.308-$1.313 billion ($1.29B consensus). The stock popped on the news and has since been forming a bullish "pennant" consolidation pattern. Equities frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with six "strong buys" and sixteen "holds." Analysts see a 19% growth rate, through the next year. The stock's P/E ratio (14.20), Price to Sales ratio (1.81), Price to Book ratio (2.40), Price to Cash Flow ratio (9.25), Price to Free Cash Flow ratio (26.89), EPS Growth rate (42.31%), Net Profit Margin (13.33%) and Return on Assets (10.53%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 79% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $13.40 and $21.06. A stop-loss of $17.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

The efficiency of high-speed Internet service depends critically on the reliability of its infrastructure components. An Eden Prairie, Minnesota firm is acknowledged as a leading manufacturer of the needed equipment, by virtue of serving big name clients in over 140 countries.

ADC Telecommunications (NASDAQ:ADCT) provides infrastructure equipment used by wireline, wireless, cable, broadcast and enterprise networks. Its systems connect high-speed Internet, data, video and voice services to residential, business and mobile subscribers. The firm also provides network management software and integration services. Among the company's customers are the Bank of England, Bloomberg, Morgan Stanley (NYSE:MS) and Verizon Communications (NYSE:VZ).

The firm surprised the Street last week, when it reported fiscal Q1 EPS of fourteen cents (ex-items) and revenues of $297.2 million. Analysts had been looking for six cents and $262.4 million. Gross margins improved to 32.0 percent, from 30.2 percent in the fourth quarter of 2006. Management also guided FY07 EPS to 81-91 cents (83 cent consensus) and FY07 revenues to $1.260-$1.290 billion ($1.27 billion consensus). The stock popped on the news and has since been defining a bullish "pennant" consolidation pattern. Stocks frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with five "strong buys" and seventeen "holds." Analysts see a 21% growth rate through the next year. The stock's P/E ratio (18.59), Price to Sales ratio (1.46), Price to Book ratio (2.17), Price to Cash Flow ratio (9.59), Price to Free Cash Flow ratio (21.62) and EPS Growth rate (819.39%) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 77% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $11.81 and $26.76. A stop-loss of $14.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.