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Alcatel-Lucent (NYSE: ALU) reported earnings on July 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Alcatel-Lucent beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP loss per share dropped. GAAP loss per share grew.
Gross margins expanded, operating margins grew, net margins contracted.
Revenue details
Alcatel-Lucent reported revenue of $4.70 billion. The 15 analysts polled by S&P Capital IQ expected sales of $4.52 billion on the same basis. GAAP reported sales were 4.5% higher than the prior-year quarter's $4.49 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS details
EPS came in at -$0.10. The six earnings estimates compiled by S&P Capital IQ predicted -$0.10 per share. Non-GAAP EPS were -$0.10 for Q2 compared to -$0.12 per share for the prior-year quarter. GAAP EPS were -$0.51 for Q2 against -$0.14 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
Margin details
For the quarter, gross margin was 31.9%, 20 basis points better than the prior-year quarter. Operating margin was 4.0%, 260 basis points better than the prior-year quarter. Net margin was -24.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $4.85 billion. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $19.36 billion. The average EPS estimate is -$0.48.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 744 members out of 916 rating the stock outperform, and 172 members rating it underperform. Among 140 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Alcatel-Lucent a green thumbs-up, and 29 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 $1.95.
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