Tellabs Quarterly Earnings Approach

Tellabs, Inc. (NASDAQ:TLAB) will unveil its latest earnings on Wednesday, October 24, 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 the company to break even after the company reported a loss of one cent per share in the year-earlier quarter. During the past three months, the average estimate has moved down from one cent. Between one and three months ago, the average estimate moved down. It has been unchanged at breaking even during the last month.

Last quarter, the company came in at profit of one cent per share against a mean estimate of net loss of one cent per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 2 cents.

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A Look Back: In the second quarter, the company’s loss narrowed to a loss of $4.7 million (one cent a share) from a loss of $20.1 million (6 cents) a year earlier, beating analyst expectations. Revenue fell 13.8% to $288.1 million from $334.2 million.

Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose 42 cents (14%), from $2.96 to $3.38. The stock price saw one of its best stretches over the last year between June 28, 2012 and July 5, 2012, when shares rose for five straight days, increasing 6.1% (+20 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: On average, analysts predict $276.8 million in revenue this quarter, a decline of 11.8% from the year-ago quarter. Analysts are forecasting total revenue of $1.11 billion for the year, a decline of 14% from last year’s revenue of $1.29 billion.

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 26.9% in the third quarter of the last fiscal year, 23.2% in fourth quarter of the last fiscal year and 20% in the first quarter and then fell again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.25 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.

Analyst Ratings: There are mostly holds on the stock with eight of 11 analysts surveyed giving that rating.

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

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