JDS Uniphase Goes Red

Seth Jayson, The Motley Fool
Updated

JDS Uniphase (NAS: JDSU) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q3), JDS Uniphase missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank to a loss.


Margins dropped across the board.

Revenue details
JDS Uniphase reported revenue of $409.2 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $420.3 million on the same basis. GAAP reported sales were 9.9% lower than the prior-year quarter's $454.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.11. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.11 per share. GAAP EPS were -$0.08 for Q3 compared to $0.16 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.9%, 220 basis points worse than the prior-year quarter. Operating margin was -1.4%, 580 basis points worse than the prior-year quarter. Net margin was -4.3%, 1,280 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $429.1 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $1.67 billion. The average EPS estimate is $0.56.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 680 members out of 820 rating the stock outperform, and 140 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 126 give JDS Uniphase a green thumbs-up, and 29 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on JDS Uniphase is outperform, with an average price target of $16.77.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended writing naked calls on JDS Uniphase. 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.

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