Tellabs Slumps to Fresh Session Lows

Shares of Tellabs, Inc. (TLAB) are trading down 21% to $5.56 after the company reported a fourth-quarter net loss of $10.9 million, or 3 cents per share, compared with net income of $62.1 million, or 16 cents per share, y/y. Looking ahead, the maker of telecommunications equipment said it expects first-quarter revenue of $335 million at most. Analysts had forecast revenue of about $402.4 million.

Following the company’s Q4 miss and soft guidance, Morgan Stanley (MS) downgraded the shares to “Underweight” from “Equal weight.”

Today’s trading range for shares of  Tellabs, Inc has been between $5.51 and $5.75 per share. The stock closed at $7.04 p/sh yesterday, with a 52 week range of $5.89 – $9.45.

Volume has exploded ; mid-way through the session TLAB shares have already traded 27 million shares, well above the daily average volume of 5.6 million shares.

Tellabs Inc., whose MACD indicator currently sits in bearish territory with a reading of -0.044, trades at a trailing P/E of 9.43, a forward multiple of 13.29 and a P/E to growth ratio of 1.39.

Tellabs designs, develops, and supports telecommunications networking products for communications service providers worldwide. The company was founded in 1974 and is headquartered in Naperville, Illinois.

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About Ron Haruni 1121 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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