JDS Uniphase Beats Estimates but Has a Big Earnings Drop

JDS Uniphase (Nasdaq: JDSU  ) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), JDS Uniphase beat expectations on revenues and earnings per share.

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

Margins shrank across the board.

Revenue details
JDS Uniphase booked revenue of $413.1 million. The 12 analysts polled by S&P Capital IQ foresaw net sales of $391.0 million. Sales were 13% lower than the prior-year quarter's $477.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.15. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.10 per share on the same basis. GAAP EPS were -$0.04 for Q2 versus $0.10 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 46.1%, 200 basis points worse than the prior-year quarter. Operating margin was 0.6%, 700 basis points worse than the prior-year quarter. Net margin was -2.5%, 750 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $417.4 million. On the bottom line, the average EPS estimate is $0.15.

Next year's average estimate for revenue is $1.68 billion. The average EPS estimate is $0.64.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 682 members out of 823 rating the stock outperform, and 141 members rating it underperform. Among 162 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 137 give JDS Uniphase a green thumbs-up, and 25 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 $14.70.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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