The 10-second takeaway
For the quarter ended March 30 (Q1), Tellabs missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP loss per share increased.
Margins shrank across the board.
Tellabs booked revenue of $257.9 million. The 12 analysts polled by S&P Capital IQ predicted a top line of $277.0 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $322.4 million.
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 -$0.04. The 13 earnings estimates compiled by S&P Capital IQ anticipated -$0.03 per share. GAAP EPS were -$0.38 for Q1 versus -$0.07 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 37.1%, 80 basis points worse than the prior-year quarter. Operating margin was -12.0%, 220 basis points worse than the prior-year quarter. Net margin was -54.2%, 4,670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $291.1 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $1.17 billion. The average EPS estimate is $0.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 398 members out of 445 rating the stock outperform, and 47 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Tellabs a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tellabs is hold, with an average price target of $4.30.
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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. 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.