Tellabs Second Quarter Earnings Sneak Peek

Tellabs, Inc. (NASDAQ:TLAB) will unveil its latest earnings on Thursday, July 26, 2012. 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 one cent per share, a narrower loss from the year-earlier quarter net loss of 3 cents. During the past three months, the average estimate has moved down from breaking even. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of one cent during the last month.

Past Earnings Performance: Last quarter, the company fell short of estimates by 0 cents, coming in at a loss of 5 cents per share against a mean estimate of net loss of 3 cents. The company fell in line with expectations in the fourth quarter of the last fiscal year.

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A Look Back: In the first quarter, the company’s loss widened to a loss of a $139.8 million (38 cents a share) from a loss of $24.1 million (7 cents) a year earlier, missing analyst expectations. Revenue fell 20% to $257.9 million from $322.4 million.

Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price fell 94 cents (-23.2%), from $4.03 to $3.10. 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, increasing 12.5% (+50 cents) over that span. It saw one of its worst periods between November 10, 2011 and November 25, 2011 when shares fell for 11 straight days, dropping 11.9% (-52 cents) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 13.7% in revenue from the year-earlier quarter to $288.6 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 20.9% in the second quarter of the last fiscal year, 26.9% in third quarter of the last fiscal year and 23.2% in the fourth quarter of the last fiscal year and then fell again in the first quarter.

Analyst Ratings: There are mostly holds on the stock with nine of 12 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.08 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.2 in the fourth quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 2.6% to $1.65 billion while liabilities rose by 1.3% to $536.7 million.

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

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