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JDS Uniphase Beats Expectations But Takes A Step Back Anyway

By Seth Jayson – Updated Apr 7, 2017 at 12:02PM

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Just the facts, Fool.

JDS Uniphase (Nasdaq: JDSU) reported earnings on Oct. 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 29 (Q1), JDS Uniphase met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP loss per share grew.

Margins dropped across the board.

Revenue details
JDS Uniphase recorded revenue of $420.9 million. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $425.0 million on the same basis. GAAP reported sales were 0.0% higher than the prior-year quarter's $420.8 million.

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 $0.15. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.11 per share. GAAP EPS were -$0.05 for Q1 compared to -$0.03 per share for the prior-year quarter.

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 45.1%, 170 basis points worse than the prior-year quarter. Operating margin was 0.7%, 220 basis points worse than the prior-year quarter. Net margin was -2.8%, 140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $461.5 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $1.81 billion. The average EPS estimate is $0.73.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 683 members out of 823 rating the stock outperform, and 140 members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give JDS Uniphase a green thumbs-up, and 31 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 $14.06.

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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. The Motley Fool has no positions in the stocks mentioned above. 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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