2 Stocks Reviewed by Investors With Earnings Digested
Tellabs Inc. ‘s (NASDAQ:TLAB) fourth quarter loss narrowed, beating estimates. Loss narrowed to $4.9 million (loss of one cent per diluted share) from $10.9 million (loss of 2 cents per share) in the same quarter a year earlier. Revenue fell 22.8% to $316.8 million from the year earlier quarter. TLAB reported adjusted net income of one cent per share. By that measure, the company beat the mean analyst estimate of a loss of 2 cents per share. Analysts were expecting revenue of $316 million.
“In a climate of economic uncertainty, Tellabs needs to align expenses with revenue,” said Rob Pullen, Tellabs CEO and president. “Unfortunately, our restructuring will affect about 530 people. We will reduce expense and stop new development work on the Tellabs SmartCore 9100 LTE product, while continuing to support Tellabs SmartCore 9100 WiMax customers. “We’ll address customers’ needs through our next-generation portfolio of products and services for the smart mobile Internet, including Tellabs Mobile Backhaul Solution, Tellabs Packet Optical Solution and professional services such as Tellabs Insight Analytics Services.”
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).
ACE Limited (NYSE:ACE) reported its results for the fourth quarter. Net income for the property and casualty insurance company fell to $750 million ($2.20 per share) vs. $1 billion ($2.93 per share) a year earlier. This is a decline of 25.1% from the year earlier quarter. ACE reported adjusted net income of $1.94 per share. By that measure, the company beat the mean estimate of $1.83 per share.
Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had a very good fourth quarter and year given the record natural catastrophe losses the industry incurred globally. The financial results once again demonstrated our conservative approach to risk management and underwriting as well as the benefits of a well-diversified global spread of business. After-tax operating income for the year was $2.4 billion, our operating ROE was nearly 11% and we produced a combined ratio of 94.6%. Per share book value grew 6% for the year, bringing three-year compound annual growth to almost 19%.”
Competitors to Watch: ACE Limited (NYSE:AEX), XL Group plc (NYSE:XL), Allied World Assurance Co Hldgs., AG. (NYSE:AWH), HCC Insurance Hldgs., Inc. (NYSE:HCC), Arch Capital Group Ltd. (NASDAQ:ACGL), American Intl. Group, Inc. (NYSE:AIG), American Financial Group (NYSE:AFG) and Aspen Insurance Hldgs. Ltd. (NYSE:AHL).
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