Alcatel-Lucent Beats Up on Analysts Yet Again

Alcatel-Lucent (NYS: ALU) reported earnings on Wednesday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Alcatel-Lucent met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly, and GAAP earnings per share expanded significantly.

Gross margins increased, operating margins dropped, and net margins increased.

Revenue details
Alcatel-Lucent reported revenue of $5.53 billion. The 17 analysts polled by S&P Capital IQ predicted a top line of $5.49 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $6.07 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.25. The six earnings estimates compiled by S&P Capital IQ anticipated $0.10 per share on the same basis. GAAP EPS of $0.38 for Q4 were 124% higher than the prior-year quarter's $0.17 per share.


Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 34.4%, 150 basis points better than the prior-year quarter. Operating margin was 5.1%, 790 basis points worse than the prior-year quarter. Net margin was 20.9%, 1,340 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.50 billion. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $20.38 billion. The average EPS estimate is $0.26.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 657 members rating the stock outperform and 158 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give Alcatel-Lucent a green thumbs-up, and 32 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Alcatel-Lucent is hold, with an average price target of $2.82.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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