The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Alcatel-Lucent beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Alcatel-Lucent booked revenue of $4.62 billion. The 16 analysts polled by S&P Capital IQ expected revenue of $4.57 billion on the same basis. GAAP reported sales were 9.5% lower than the prior-year quarter's $5.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.06. The four earnings estimates compiled by S&P Capital IQ anticipated -$0.03 per share. GAAP EPS were -$0.08 for Q3 versus $0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.9%, 840 basis points worse than the prior-year quarter. Operating margin was -5.0%, 780 basis points worse than the prior-year quarter. Net margin was -4.1%, 920 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.31 billion. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $18.72 billion. The average EPS estimate is -$0.12.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 718 members out of 889 rating the stock outperform, and 171 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 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 $1.52.
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