Tellabs, in the Spotlight Soon

Tellabs (Nasdaq: TLAB  ) is expected to report Q4 earnings on Jan. 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Tellabs's revenues will wane -20.7% and EPS will wither -100.0%.

The average estimate for revenue is $251.2 million. On the bottom line, the average EPS estimate is $0.00.

Revenue details
Last quarter, Tellabs booked revenue of $264.4 million. GAAP reported sales were 20% lower than the prior-year quarter's $329.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.02. GAAP EPS were -$0.01 for Q3 compared to -$0.36 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 39.2%, 210 basis points worse than the prior-year quarter. Operating margin was 0.5%, 340 basis points better than the prior-year quarter. Net margin was -1.5%, 3,790 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.06 billion. The average EPS estimate is -$0.02.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 388 members out of 434 rating the stock outperform, and 46 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Tellabs a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tellabs is hold, with an average price target of $4.03.

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