), a leading provider of communications test and measurement
solutions, is slated to report its second-quarter fiscal 2014
earnings after the closing bell on Jan 30, 2014.
In the prior quarter, the company's earnings came in line with
the Zacks consensus estimate. Let's see how things are shaping up
for this announcement.
Factors to Influence This Quarter
The company recently acquired privately held Network
Instruments, a global developer of enterprise network and
application-performance management solutions, for $200 million in
The takeover of Network Instruments will strengthen the
foothold of JDS Uniphase in the enterprise, data center and cloud
networking segments. Currently, the application-based network
performance management and network packet broker markets are
growing at a CAGR of 13%. Network Instruments will enhance JDS
Uniphase's market prospects by approximately $1 billion in the
However, the optical component manufacturing segment is
witnessing a consolidation trend. Optical gear maker, Oclaro,
acquired its peer Opnext. We believe that the merged entity may
act as a major threat to JDS Uniphase.
Our proven model does not conclusively show that JDS Uniphase
is likely to beat the Zacks Consensus Estimate this quarter. This
is because a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. Unfortunately,
this is not the case here as elaborated below.The Sell-rated
stocks (#4 and 5) should never be considered going into an
The Most Accurate estimate and the Zacks Consensus Estimate is
poised at $0.09. Hence, the ESP is 0.00%.
Zacks Rank #3 (Hold):
JDS Uniphase's Zacks Rank #3 decreases the predictive power of
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of 0.00% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to consider as our model shows
these have the right combination of elements to post an earnings
beat this quarter.
Palo Alto Networks, Inc.
) with earnings ESP of +33.33% and Zacks Rank #3.
) with earnings ESP of +0.62% and Zacks Rank #3.
) with earnings ESP of +1.18% and Zacks Rank #2 (Buy).
HEWLETT PACKARD (HPQ): Free Stock Analysis
JDS UNIPHASE CP (JDSU): Free Stock Analysis
3M CO (MMM): Free Stock Analysis Report
PALO ALTO NETWK (PANW): Free Stock Analysis
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