Tellabs Earnings: Loss Narrows

S&P 500 (NYSE:SPY) component Tellabs Inc. (NASDAQ:TLAB) reported its results for the third quarter. Tellabs designs and markets equipment to telecommunications service providers worldwide.

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Tellabs Inc. Earnings Cheat Sheet

Results: Loss narrowed to $4 million (loss of one cent per diluted share) from $130 million (loss of 36 cents per share) in the same quarter a year earlier.

Revenue: Fell 20% to $264 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tellabs Inc. was about in line with expectations as the mean analyst estimate was breaking even. It fell short of the average revenue estimate of $288.6 million.

Quoting Management: “As we transform Tellabs’ business model and create a path to sustained future growth and profitability, we must continue to lower costs and expenses,” said Dan Kelly, Tellabs acting CEO and president. “At the same time, we are increasing R&D investments in our next-generation products to help our customers succeed with Tellabs optical, data and access solutions.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of one cent versus a mean estimate of a loss of one cent per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is one cent per share, down from 3 cents ninety days ago. Down from a loss of 2 cents per share ninety days ago, the average estimate for the fiscal year is now a loss of 4 cents.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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