Tellabs (NAS: 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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The article Tellabs, in the Spotlight Soon originally appeared on

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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