Tellabs Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Tellabs (Nasdaq: TLAB  ) , a specialist maker of communications equipment, closed up more than 10% on cost cutting news and better-than-expected financial results.

So what: Management announced a plan to cut 330 jobs and reduce corporate expenses by some $50 million, yet that may not be enough. Revenue fell by roughly $88 million, or 21%, year over year. The company’s $0.02 adjusted net loss beat expectations by a penny.

Now what: I can't see how that matters. Tellabs has burned through more than $53 million in cash from operations during first six months of the year, reversing what had been a generally reliable trend. Expect more cost cuts, Fool. Soon. Do you agree? Disagree? Let us know using the comments box below.

Interested in more info on Tellabs?Add it to your watchlist.

Fool contributorTim Beyers is a member of theMotley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdings andFoolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insightsdelivered directly to your RSS reader.

Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1525226, ~/Articles/ArticleHandler.aspx, 10/21/2014 3:26:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement