Shares of Adtran (NASDAQ: ADTN) surged 15.79% in premarket trading on Thursday, following the company's upbeat fourth-quarter 2024 results and optimistic guidance for the first quarter of 2025.

The networking equipment maker reported better-than-expected financial results for the fourth quarter, driven by improved market conditions and strong demand for its products. Adtran reported adjusted earnings per share of $0.00, beating analysts' consensus estimate of a $0.03 loss. Revenue rose 7.7% year-over-year to $242.85 million, exceeding the consensus estimate of $237.95 million.

Adtran's Chairman and CEO Tom Stanton attributed the strong performance to higher service provider spending, lower customer inventory levels, and a shift away from high-risk vendors. He noted that the company made progress across geographies, product lines, and customer base expansion during the quarter.

Looking ahead, Adtran expects revenue in the range of $237.5 million to $252.5 million for the first quarter of 2025, with non-GAAP operating margin ranging from 0% to 4%. The company's positive outlook, coupled with the better-than-expected Q4 results, fueled investor optimism, driving the significant premarket rally.