Tellabs Misses on Both Revenue and Earnings
Tellabs (NAS: TLAB) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 30 (Q1), Tellabs missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP loss per share increased.
Margins shrank across the board.
Tellabs booked revenue of $257.9 million. The 12 analysts polled by S&P Capital IQ predicted a top line of $277.0 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $322.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.04. The 13 earnings estimates compiled by S&P Capital IQ anticipated -$0.03 per share. GAAP EPS were -$0.38 for Q1 versus -$0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.1%, 80 basis points worse than the prior-year quarter. Operating margin was -12.0%, 220 basis points worse than the prior-year quarter. Net margin was -54.2%, 4,670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $291.1 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $1.17 billion. The average EPS estimate is $0.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 398 members out of 445 rating the stock outperform, and 47 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Tellabs a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tellabs is hold, with an average price target of $4.30.
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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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.