JDS Uniphase: A Stock Slipping on Hard Times in 2011
With the year quickly coming to an end, it's a good idea to check in on how some of our most-watched stocks are doing. By continually completing our due diligence, we're able to get a sense for where a business is coming from, and where it's going.
Today, we'll be examining JDS Uniphase (NAS: JDSU) , which provides fiber-optic components for the communications industry.
We'll go over the specifics of the company below, but first, here are the vital statistics:
Stats on JDS Uniphase
|Year-to-Date Stock Return||(30%)|
|Market Cap||$2.3 billion|
|1-Year Revenue Growth||32.3%|
|1-Year EPS Growth||NM|
|CAPS Rating (out of 5)||***|
Source: Yahoo! Finance, Google Finance, fool.com NM=Not meaningful, as the company was not profitable one year ago.
In like a lion, out like a lamb
JDS got the party started just after the start of the new year, announcing excellent earnings, thanks in part to the many Kinect gaming systems that found their spot under the holiday tree. Microsoft (NAS: MSFT) uses JDS components in the system.
But just as soon as everything seemed to be looking rosy for 2011, the bottom came out of the entire industry. JDSU wasn't alone, as rivals Oclaro (NAS: OCLR) , Finisar (NAS: FNSR) , and Ciena (NAS: CIEN) all saw their valuations cut in half from their March highs.
The main culprit was an inventory buildup at larger communications companies, and a refusal to commit money to capital expenditures in an uncertain economy.
The industry did, however, start to show signs of life later in the year with a brief rally in August. But as 2011 has come to a close, investors haven't been impressed enough to move the needle on the company's stock much.
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At the time this article was published Fool contributor Brian Stoffel does not own shares in any of the companies mentioned. You can follow him on Twitter at @TMFStoffel.The Motley Fool owns shares of Microsoft. Motley Fool newsletter services have recommended buying shares of Microsoft, and creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy..