NEW YORK (TheStreet) -- Alcatel-Lucent (ALU) is due to report fourth-quarter and full-year earnings before the bell Thursday. Analysts expect the French telecommunications company to return to profitability for the first time since its fourth quarter in 2011.
Analysts surveyed by Thomson Reuters anticipate net income of US$71.83 million from a net loss of $254.46 million in the September-ended third quarter. Consensus is for per-share earnings of 3 cents, compared to an 11-cents-a-share loss a quarter ago and 70-cents-a-share loss in the year-ago quarter. Revenue is expected to increase 4.4% to $5.64 billion.
Over fiscal 2013, analysts expect a per-share net loss of 55 cents and revenue of $20.18 billion.
The struggling company announced its SHIFT plan in June last year, a strategic push to strengthen its specialty in IP networking and ultra-broadband access, while reducing costs by Euro 1 billion within two years.
CEO Michel Combes has been making aggressive moves to turn the company around. By the end of 2015, the phone equipment maker will have cut 10,000 jobs, reducing fixed costs by more than 15%.
TheStreet Ratings team rates ALCATEL-LUCENT as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate ALCATEL-LUCENT (ALU) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and disappointing return on equity."