Tellabs (Nasdaq: TLAB) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Tellabs met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share dropped. The non-GAAP profit was a surprise, as analysts had predicted a loss.

Margins improved across the board.

Revenue details
Tellabs reported revenue of $316.8 million. The 14 analysts polled by S&P Capital IQ wanted to see sales of $315.5 million. Sales were 23% lower than the prior-year quarter's $410.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.01. The 13 earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share on the same basis. GAAP EPS were -$0.01 for Q4 versus -$0.03 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.5%, 460 basis points better than the prior-year quarter. Operating margin was -1.1%, 50 basis points better than the prior-year quarter. Net margin was -1.5%, 120 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $277.6 million. On the bottom line, the average EPS estimate is -$0.03.

Next year's average estimate for revenue is $1.18 billion. The average EPS estimate is -$0.01.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 400 members out of 445 rating the stock outperform, and 45 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Tellabs a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tellabs is hold, with an average price target of $4.90.

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