On Sep 3, 2014, we issued an updated research report on
JDS Uniphase Corp.
). The company has demonstrated significant year-over-year
improvement on strong contributions from its Internetworking and
Broadband Access product divisions. However, JDS Uniphase slashed
its first-quarter fiscal 2015 revenue guidance.
The company has delivered positive earnings surprises in all four
quarters last year, with an average beat of positive 32.54%. JDS
Uniphase has also reported strong financial results for the fourth
quarter of fiscal 2014 wherein both its top and bottom line
outpaced the Zacks Consensus Estimate.
We believe that the Communications Test and Measurement division of
the company will immensely benefit from the massive growth of
wireless backhaul and DOCSIS 3.0 network deployment. As wireless
carriers are gradually increasing their backhaul capacity owing to
significant growth of mobile Internet traffic and multimedia
applications, cable operators are rapidly deploying DOCSIS 3.0
networks to compete by providing faster data access speeds.
Over the last two quarters, both Optical Security and Performance
and Laser book-to-bill ratio stood above 1, mainly buoyed by higher
demand for Gen 2 fiber lasers. Also, the Communications test and
Measurement and Communications and Commercial Optical Products
units have generated the highest order bookings in the last 10
years. Meanwhile, JDS Uniphase's newly-launched products coupled
with the acquisitions of Trendium, Network Instruments and Arieso
are the long-term positives for the company.
On the downside, ongoing global economic fluctuations may
significantly mar the prospects of JDS Uniphase. Moreover, the
consolidation trend of wireless networks and data centers will
worsen the situation.
JDS Uniphase currently carries a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Other better-ranked stocks that belong to the sector include 8x8
), Aerohive Networks, Inc. (
) and Arista Networks, Inc. (
). Currently, all three have a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
JDS UNIPHASE CP (JDSU): Free Stock Analysis
AEROHIVE NETWRK (HIVE): Free Stock Analysis
8X8 INC (EGHT): Free Stock Analysis Report
ARISTA NETWORKS (ANET): Free Stock Analysis
To read this article on Zacks.com click here.