The 10-second takeaway
For the quarter ended March 31 (Q1), Alcatel-Lucent beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted to a loss. GAAP loss per share shrank.
Gross margins shrank, operating margins grew, net margins contracted.
Alcatel-Lucent reported revenue of $4.13 billion. The 14 analysts polled by S&P Capital IQ expected revenue of $4.09 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$0.19. The five earnings estimates compiled by S&P Capital IQ averaged -$0.12 per share. Non-GAAP EPS were -$0.19 for Q1 versus $0.21 per share for the prior-year quarter. GAAP EPS were -$0.21 for Q1 compared to -$0.24 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 29.4%, 80 basis points worse than the prior-year quarter. Operating margin was -7.0%, 280 basis points better than the prior-year quarter. Net margin was -10.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.48 billion. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $18.52 billion. The average EPS estimate is -$0.26.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 752 members out of 929 rating the stock outperform, and 177 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 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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