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Will These Numbers from Alcatel-Lucent Be Good Enough for You?

Alcatel-Lucent (NYSE: ALU  ) is expected to report Q4 earnings on Feb. 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Alcatel-Lucent's revenues will wither -2.3% and EPS will drop -100.0%.

The average estimate for revenue is $5.40 billion. On the bottom line, the average EPS estimate is $0.00.

Revenue details
Last quarter, Alcatel-Lucent recorded revenue of $4.62 billion. GAAP reported sales were 7.2% lower than the prior-year quarter's $4.98 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.06. GAAP EPS were -$0.08 for Q3 compared to $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.

Recent performance
For the preceding quarter, gross margin was 27.9%, 740 basis points worse than the prior-year quarter. Operating margin was -5.0%, 720 basis points worse than the prior-year quarter. Net margin was -4.1%, 930 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $19.15 billion. The average EPS estimate is -$0.24.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 732 members out of 906 rating the stock outperform, and 174 members rating it underperform. Among 140 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 108 give Alcatel-Lucent a green thumbs-up, and 32 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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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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.

  • Report this Comment On February 05, 2013, at 7:38 AM, bestwaytoriches wrote:


    Each day between thestreet and Motlyfool for the last 4 weeks ever since the refinancing of ALU there's been 3 or 4 articles per day trying to get investor to fall for the ALU story. That's call beating a dead horse. Could you guys give it a break. ALU warned there numbers would be weak. Who can trust ALU accounting with such problems in Europe? One day maybe ALU will be invest-able but not now.

    On the other hand no one is writing about RAD up 50% in January alone with upgrades and raised guidance twice now that's a story to write about. If you feel able to get your hand around the truth.

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Alcatel-Lucent CAPS Rating: ****