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

S&P 500 (NYSE:SPY) component Tellabs, Inc. (NASDAQ:TLAB) will unveil its latest earnings on Tuesday, July 26, 2011. Tellabs, Inc. 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 a loss of 3 cents per share, a swing from profit of 17 cents in the year earlier quarter. 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 and dropped from a loss of 2 cents during the last month. For the year, analysts are projecting net loss of 7 cents per share, a swing from net income of 47 cents last year.

Past Earnings Performance: The company is looking to top analyst estimates this quarter after trailing for the two previous quarters. Last quarter, it missed estimates by reporting a loss of 5 cents per share against an estimate of net loss of 3 cents per share. The quarter before that, it missed expectations by 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $336.9 million in revenue this quarter, a decline of 20.3% from the year ago quarter. Analysts are forecasting total revenue of $1.39 billion for the year, a decline of 15.2% from last year’s revenue of $1.64 billion.

Analyst Ratings: Analysts seem relatively indifferent about Tellabs with 15 of 19 analysts surveyed maintaining a hold rating.

Key Stats:

A year-over-year revenue decrease in the first quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 15.1% in the first quarter and rose 5.5%in the fourth quarter of the last fiscal year, 10.2% in the third quarter of the last fiscal year and 28.5% in the second quarter of the last fiscal year.

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 April 25, 2011 to July 20, 2011, the stock price had fallen $1.07 (-19.9%) from $5.37 to $4.30. The stock price saw one of its best stretches over the last year between February 2, 2011 and February 8, 2011 when shares rose for five-straight days, rising 7.8% (+41 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 5.2% (-27 cents) over that span. Shares are down $2.43 (-36.1%) year to date.

(Source: Xignite Financials)

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