Alcatel-Lucent Makes Analysts Look Bad
Alcatel-Lucent (NYS: ALU) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Alcatel-Lucent missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share improved. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Gross margins dropped, operating margins dropped, and net margins improved.
Alcatel-Lucent reported revenue of $4.27 billion. The 15 analysts polled by S&P Capital IQ anticipated sales of $4.47 billion on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $5.30 billion.
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 $0.21. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.01 per share. GAAP EPS were $0.24 for Q1 versus -$0.01 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 30.3%, 590 basis points worse than the prior-year quarter. Operating margin was -9.0%, 750 basis points worse than the prior-year quarter. Net margin was 12.4%, 1,270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.00 billion. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $19.99 billion. The average EPS estimate is $0.06.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 676 members out of 839 rating the stock outperform, and 163 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Alcatel-Lucent a green thumbs-up, and 33 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 $2.71.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Alcatel-Lucent fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add Alcatel-Lucent to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.