Alcatel-Lucent Misses Where it Counts

Alcatel-Lucent (NYSE: ALU  ) reported earnings on May 13. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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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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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