Alcatel-Lucent Reports Earnings, Stock Soars On Optimistic Outlook
Paris-based telecom equipment builder Alcatel-Lucent reported third-quarter sales of $5.1 billion and an adjusted net loss of $0.08 per American depositary share earlier today. That's 7% year-over-year sales growth on a currency-adjusted basis, and a marked improvement from the year-ago period's $0.50 loss per ADS. Gross margins improved to 32.6%, compared to 27.8% a year ago.
S&P Capital IQ estimates had predicted an adjusted net loss of $0.06 per ADS so Alcatel missed that Street target, but revenues just edged out analyst estimates.
Alcatel's results were driven by 6% higher sales in the IP routing segment and a number of high-speed Internet backbone installations during the quarter. From a geographic point of view, North American sales soared nearly 20% higher year-over-year while China stayed flat and Latin American sales struggled.
Looking ahead, CEO Michel Combes expects accelerated cost savings on top of strong seasonal patterns in the year-ending quarter. "We are seeing the first positive signs of our new operating model in our day-to-day business," Combes said.
That optimistic note struck a chord with Alcatel investors: Alcatel shares opened 11% higher on the Euronext Paris market, and have only traded higher since then.
You can access Alcatel-Lucent's full results here, alongside the financial statements in a separate PDF download. Don't worry, these are the English versions of Alcatel's reports.
The article Alcatel-Lucent Reports Earnings, Stock Soars On Optimistic Outlook originally appeared on Fool.com.Fool contributor Anders Bylund has no position in any stocks mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+.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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.