JDSU Beats the Street, but Is That Good Enough?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Optical networking veteran JDS Uniphase (Nasdaq: JDSU  ) just reported adjusted fourth-quarter earnings of $0.15 per share on $439 million in sales. Next to analyst targets of $0.12 per share and $423 million, that's a robust outperformance on both the top and bottom lines. Shares jumped as much as 7.9% in pretty heavy after-market action on the news.

Management still reserves the right to err on the side of caution, issuing revenue guidance just below the reigning Street view. Still, the sum of past and future works out to good news this time. This welcome burst of positive energy even ignited a mini-rally in optical gear stocks: Ciena jumped as much as 2.1% after hours and Finisar bounced 3.9% at best.

Of course, both of these stocks lost far more in Tuesday's regular trading than they gained after the closing bell. It's fair to say that investors in this market still have plenty of raw nerves jangling around.

In particular, the report didn't include any glowing remarks about healthy orders from the telecom sector. That key segment is overdue for a rebound, but neither JDSU's reported results nor its next-quarter outlook tipped us off that she'll be coming 'round the mountain anytime soon.

So we're all still waiting on the big telecoms to put their backs into network build-outs. Both AT&T and Verizon have built nationwide 4G LTE networks already, but they must keep improving their wireless services lest they become overwhelmed by a rising tide of smartphone and tablet users. Resting on their laurels just isn't good enough.

Get a wide-angle picture of the smartphone revolution by clicking right here. In this special report, you'll find out why investors are so excited about this exploding trillion-dollar revolution.

Fool contributor Anders Bylund holds no position in any of the companies mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+. The Motley Fool has a disclosure policy.

We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1985044, ~/Articles/ArticleHandler.aspx, 10/23/2016 2:37:09 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
VIAV $7.19 Down -0.10 -1.37%
Viavi Solutions CAPS Rating: ***