Alcatel-Lucent Earnings: Here’s Why Investors are Excited Now

Alcatel-Lucent (NYSE:ALU) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 8.18%.

Alcatel-Lucent Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.38 in the quarter versus EPS of $-0.12 in the year-earlier quarter.

Revenue: Decreased 19.55% to $3.61 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alcatel-Lucent reported adjusted EPS loss of $0.38 per share. By that measure, the company missed the mean analyst estimate of $-0.09. It missed the average revenue estimate of $4.49 billion.

Quoting Management: “We are at the beginning of our journey towards 2015 and cash remains a challenge,” chief executive, Michel Combes, said.

Key Stats (on next page)…

Revenue decreased 12.63% from $4.13 billion in the previous quarter. EPS decreased to $-0.38 in the quarter versus EPS of $-0.19 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.02 to a loss $0.06. For the current year, the average estimate has moved down from a loss of $0.16 to a loss of $0.31 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)