The 10-second takeaway
For the quarter ended June 30 (Q2), Alcatel-Lucent met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Alcatel-Lucent reported revenue of $4.49 billion. The 13 analysts polled by S&P Capital IQ expected net sales of $4.52 billion on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $5.67 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 -$0.12. The five earnings estimates compiled by S&P Capital IQ forecast $0.00 per share. GAAP EPS were -$0.14 for Q2 compared to $0.02 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 31.7%, 410 basis points worse than the prior-year quarter. Operating margin was -2.4%, 830 basis points worse than the prior-year quarter. Net margin was -7.2%, 830 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.42 billion. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $18.25 billion. The average EPS estimate is -$0.14.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 713 members out of 882 rating the stock outperform, and 169 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give Alcatel-Lucent a green thumbs-up, and 31 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 $2.24.
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