Following the third quarter earnings announcement on May 3, none
of the analysts covering
JDS Uniphase Corp.
) have revised their estimates. The brokers have retained their
estimates based on the belief that the volatile macroeconomic
conditions, delays in carrier spending and other negative news has
already been reflected in the current valuation.
First Quarter Highlights
On a GAAP basis, quarterly net loss was $17.4 million or 8 cents
per share, compared with a net income of $38.6 million or 16 cents
per share in the year-ago quarter. Adjusted EPS of 5 cents missed
the Zacks Consensus Estimate of 7 cents.
Quarterly net revenue of $409.2 million was down 10.1% year over
year, well below the Zacks Consensus Estimate of $420 million.
Operating loss was $7.6 million compared with an operating income
of $12.6 million in the prior-year quarter.
Agreement of Analysts
Of the two analysts covering the stock in the last 7 days, none
of the analysts have revised the estimates upward or downward for
the fourth quarter of 2012. Similarly, for the first quarter of
2013, out of the two analysts covering the stock, none have revised
Similarly, for fiscal 2012 and 2013, out of the two analysts
covering the stock in the last 7 days, none have revised their
Currently, the Zacks Consensus Estimate for the fourth quarter
of fiscal 2012 is 9 cents, with a projected annual decline of
43.75%. For the first quarter of fiscal 2013, the Zacks Consensus
Estimate of 14 cents indicates an annual growth of 35.00%.
Magnitude of Estimate Revisions
During the past 7 days, the current Zacks Consensus Estimate for
the fourth quarter of 2012 and the first quarter of 2013 has been
in line with the previous estimates of 9 and 14 cents respectively.
Similarly, for fiscal 2012 and 2013, the current Zacks Consensus
Estimate remains in line with the previous estimates of 38 and 77
The company has fallen short of the Zacks Consensus Estimates in
two out of the four previous quarters. In the first quarter of
2012, the company's reported earnings were in line with the Zacks
Consensus Estimate, while it fell short by 2 cents or 28.57% in the
third quarter of 2012.
The estimates for the fourth quarter of 2012 and the first
quarter of 2013 are in line with the Zacks Consensus Estimates.
Similarly, fiscal 2012 and 2013 estimates are in line with the
Zacks Consensus Estimate.
Going forward, we believe that as a supplier of fiber optic
components for high speed communication network, JDS Uniphase will
benefit owing to the increased broadband penetration and rapidly
growing internet subscriber.
Diversification in non-telecom areas like commercial laser,
currency pigments, 3-D cinema and more will act as a growth
catalyst for the company. Additionally, the acquisition of
Agilent Technology Inc
) Network Solution Division has increased its market size
However, we remain concerned about the slowness of the U.S.
economic growth and a slow carrier spending situation in Europe and
U.S. which might act as impediments to the future growth of the
company. Recently, the optical gear manufacturing is going through
a consolidation phase which we believe might create headwinds for
Moreover, the company faces stiff competition from
), which might jeopardize its growth.
Considering these factors, we maintain our long-term Neutral
recommendation on JDS Uniphase. Currently, JDS Uniphase has a Zacks
#4 Rank, implying a short-term Sell rating on the stock.
About Earnings Estimate Scorecard
As a PhD from MIT, Len Zacks proved over 30 years ago that
earnings estimate revisions are the most powerful force impacting
stock prices. He turned this ground breaking discovery into two
of the most celebrating stock rating systems in use today. The
Zacks Rank for stock trading in a 1 to 3 month time horizon and
the Zacks Recommendation for long-term investing (6+ months).
These "Earnings Estimate Scorecard" articles help analyze the
important aspects of estimate revisions for each stock after
their quarterly earnings announcements. Learn more about earnings
estimates and our proven stock ratings at:
AGILENT TECH (A): Free Stock Analysis Report
FINISAR CORP (FNSR): Free Stock Analysis Report
JDS UNIPHASE CP (JDSU): Free Stock Analysis
OCLARO INC (OCLR): Free Stock Analysis Report
OPLINK COMMNCTN (OPLK): Free Stock Analysis
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