Inside Tellabs, Inc.’s Upcoming Third Quarter Earnings Release

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S&P 500 (NYSE:SPY) component Tellabs, Inc. (NASDAQ:TLAB) will unveil its latest earnings on Tuesday, October 25, 2011. Tellabs designs and markets equipment to telecommunications service providers worldwide.

Tellabs, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 2 cents per share, a swing from net income of 16 cents in the year earlier quarter. During the past three months, the average estimate has moved down from a loss of one cent. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. For the year, analysts are projecting a loss of 9 cents per share, a swing from profit of 47 cents last year.

Past Earnings Performance: Last quarter, the company showed net loss of 3 cents per share in the second quarter to fall in line with expectations, the company beat estimates by 2 cents in the first quarter. This comes after the company failed to meet analysts’ expectations in the previous two.

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Wall St. Revenue Expectations: On average, analysts predict $334.5 million in revenue this quarter, a decline of 22.1% from the year ago quarter. Analysts are forecasting total revenue of $1.35 billion for the year, a decline of 17.7% from last year’s revenue of $1.64 billion.

Analyst Ratings: Analysts seem relatively indifferent about Tellabs with 14 of 18 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, the company swung to a loss of $20.1 million (6 cents a share) from a profit of $64.1 million (16 cents) a year earlier, meeting analyst expectations. Revenue fell 20.9% to $334.2 million from $422.7 million.

Key Stats:

Revenue has fallen in the past two quarters. In the first quarter, the figure fell 15.1%.

Competitors to Watch: ADTRAN, Inc. (NASDAQ:ADTN), Ciena Corporation (NASDAQ:CIEN), Sycamore Networks, Inc. (NASDAQ:SCMR), Ditech Networks Inc. (NASDAQ:DITC), Calix, Inc. (NYSE:CALX), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Juniper Networks, Inc. (NYSE:JNPR), Cisco Systems, Inc. (NASDAQ:CSCO), Sonus Networks, Inc. (NASDAQ:SONS), and Alcatel-Lucent (NYSE:ALU).

Stock Price Performance: During August 23, 2011 to October 19, 2011, the stock price had risen 41 cents (10.5%) from $3.90 to $4.31. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 11, 2011 when shares rose for seven-straight days, rising 12.5% (+50 cents) over that span. It saw one of its worst periods between March 11, 2011 and March 21, 2011 when shares fell for seven-straight days, falling 5.1% (-26 cents) over that span. Shares are down $2.38 (-35.6%) year to date.

(Source: Xignite Financials)

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

 

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