Alcatel-Lucent Goes Red

Seth Jayson, The Motley Fool
Updated

Alcatel-Lucent (NYS: ALU) reported earnings on Feb. 7. 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 missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped to a loss.


Margins dropped across the board.

Revenue details
 Alcatel-Lucent tallied revenue of $5.40 billion. The 18 analysts polled by S&P Capital IQ anticipated revenue of $5.42 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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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
 EPS came in at -$0.70. The five earnings estimates compiled by S&P Capital IQ anticipated $0.00 per share. GAAP EPS were -$0.79 for Q4 against $0.38 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.

Margin details
 For the quarter, gross margin was 30.4%, 400 basis points worse than the prior-year quarter. Operating margin was 1.6%, 350 basis points worse than the prior-year quarter. Net margin was -33.5%, 5,440 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $4.26 billion. On the bottom line, the average EPS estimate is -$0.12.

Next year's average estimate for revenue is $19.12 billion. The average EPS estimate is -$0.10.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 735 members out of 910 rating the stock outperform, and 175 members rating it underperform. Among 139 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 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 $1.29.

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The article Alcatel-Lucent Goes Red 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. The Motley Fool has no position in any of the stocks mentioned. 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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