Earnings Preview: JDS Uniphase (JDSU)

JDS Uniphase (NASDAQ:JDSU) is set to post earnings after today’s close and First Call had the last estimates seen at $0.06 EPS on revenues of $355.8 million.  The company usually offers some guidance, and next quarter estimates are $0.12 EPS on revenues of $392 million.

Stock options appear to be pricing in a move of up to almost $1.00 in either direction.  Analysts are far fewer than in the dot.com and fiber optic craze days, but the ratings are mixed with an average target apparently just north of $18 per share.  Shares have traded within a band of $13 to $16 for most of the  last six months, although shares are at the higher-end of that band now.  Its average daily volume is now about 4.3 million shares.

Since its reverse split, the split-adjusted trading range over the last year is $12.41 to $19.66 and shares traded north of $30 on a split-adjusted basis in the first half of 2006.

JSDU has mostly decoupled from its sector and no longer has any real impact on other stocks in the fiber optics and optical communications sector, or at least that is the prevailing opinion since it is no longer thought of as a leader in the sector.

Jon C. Ogg
October 31, 2007

Jon Ogg can be reached at [email protected]; he produces the Special Situation Investing Newsletter and does not own securities in the companies he covers.