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.
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 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.
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.)
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.
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.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does Alcatel-Lucent fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
- Add Alcatel-Lucent to My Watchlist.
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. 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.