What to Expect From Alcatel-Lucent

Seth Jayson, The Motley Fool
Updated

Alcatel-Lucent (NYS: ALU) is expected to report Q2 earnings on July 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Alcatel-Lucent's revenues will contract 20.1% and EPS will shrink to a loss.

The average estimate for revenue is $4.52 billion. On the bottom line, the average EPS estimate is -$0.03.


Revenue details
Last quarter, Alcatel-Lucent logged revenue of $4.27 billion. GAAP reported sales were 18% lower than the prior-year quarter's $5.18 billion.

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

EPS details
Last quarter, non-GAAP EPS came in at $0.21. GAAP EPS were $0.23 for Q1 against -$0.01 per share for the prior-year quarter.

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

Recent performance
For the preceding quarter, gross margin was 30.3%, 500 basis points worse than the prior-year quarter. Operating margin was -4.7%, 560 basis points worse than the prior-year quarter. Net margin was 12.4%, 1,270 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $18.09 billion. The average EPS estimate is $0.04.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 710 members out of 876 rating the stock outperform, and 166 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give Alcatel-Lucent a green thumbs-up, and 27 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 $2.73.

The article What to Expect From Alcatel-Lucent originally appeared on Fool.com.

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.

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