Earnings Preview: Tellabs Reports Q4 Results Tuesday

| About: Tellabs, Inc. (TLAB)

Tellabs, Inc. (NASDAQ:TLAB) is scheduled to release last fiscal quarter's results before the opening bell on January 31, 2012. Let's take a look at how Tellabs has done in recent quarters. Tellabs, Inc. engages in designing and marketing equipment and services for communication-service providers in the United States and internationally. The company was founded in 1974 and is headquartered in Naperville, Illinois.

52 Week High: $5.80
52 Week Low: $3.67
Book Value: $4.60
Float Short: 2.19%

According to EDGAR Online, on average, 15 analysts are expecting the same in earnings as the last quarter of $-0.02. Investors will be looking to see a number north of $-0.02 per share based on the earnings estimates. Analyst estimates range between $-0.04 and $0.00 per share.

There is not much to say that the chart or estimates don't say pretty clearly. A stock trading for under $5 usually should be viewed with extra caution. Having the higher end of the analyst estimates give a "whoop-ti-dooo" of break-even means Tellabs in not likely to be taking on Apple (NASDAQ:AAPL) anytime soon.

If the price and earnings are not enough to scare you off, the chart should be. All the major moving averages make this one look like it's circling the drain, and even the price is below the averages. From a trend follower point of view, this is still a stock that should be shorted on rallys. Interestingly enough, the short interest is very low given the drop in price. The lack of short interest appears to be the most bullish technical aspect of the stock price.

Looking at the price movement over the last month, the stock has moved higher in price 8.44%, and changing from last year at this time -37.93%. The stock is performing well when compared to the general stock market up to this point. When reviewed with the S&P 500, the year up to date positive change is 3.47%.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $1.64 billion for 2010 vs. $1.53 billion for 2009. The bottom line has rising earnings year-over-year of $155.60 million for 2010 vs. $113.60 million for 2009. The company's earnings before interest and taxes are rising with an EBIT year-over-year of $173.70 million for 2010 vs. $93.50 million for 2009. Rising revenue along with rising earnings is a very good sign, and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue:


Here is the last few quarters to get an idea how well they perform compared to estimates:

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for TLAB:


The number of days to cover short interest based on average daily trading volume for TLAB:


I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Tagged: , Communication Equipment, Earnings
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