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Telecom equipment manufacturer Tellabs Inc. said Thursday it expects Q3 results to miss Wall Street expectations, sending its shares down 7.4% to $8.87 in AH trading. Tellabs' preliminary estimate for Q3 is now $452-460 million in revenue, below prior Street forecasts of $501.6 million. It is forecasting EPS of break-even to $0.01 including items and $0.02-0.03 excluding items, well behind analysts' prior expectation of $0.06 excluding items. Tellabs is projecting non-GAAP gross profit margins to be in the 31-32% range. "Third-quarter revenue reflected lower sales to North American wireless carriers, yet we saw sequential growth in access and data," said President and CEO Krish A. Prabhu. Tellabs will post results on Tuesday, October 23.

Sources: Reuters, TheStreet.com, Forbes
Commentary: Nortel Takes Aim at TellabsNortel To Buy Tellabs?Buyout Speculation Lifts Tellabs
Stocks/ETFs to watch: TLAB. Competitors: ALU, CSCO, NT. ETFs: IGN, PXQ, BDH
Earnings call transcript: Tellabs Q2 2007

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Source: Tellabs Warns on Q3 Results