Alcatel-Lucent (NYSE: ALU) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Alcatel-Lucent met expectations on revenue and missed expectations on earnings per share.

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

Margins contracted across the board.

Revenue details
Alcatel-Lucent reported revenue of $4.49 billion. The 13 analysts polled by S&P Capital IQ expected net sales of $4.52 billion on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $5.67 billion.

My

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 -$0.12. The five earnings estimates compiled by S&P Capital IQ forecast $0.00 per share. GAAP EPS were -$0.14 for Q2 compared to $0.02 per share for the prior-year quarter.

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 31.7%, 410 basis points worse than the prior-year quarter. Operating margin was -2.4%, 830 basis points worse than the prior-year quarter. Net margin was -7.2%, 830 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.42 billion. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $18.25 billion. The average EPS estimate is -$0.14.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 713 members out of 882 rating the stock outperform, and 169 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Alcatel-Lucent a green thumbs-up, and 31 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 $2.24.

Over the decades, small-cap stocks like Alcatel-Lucent have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.