Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of telecom networking equipment maker JDS Uniphase (NASDAQ:VIAV) soared 18% today after the company's quarterly results easily topped Wall Street expectations.

So what: JDS shares have slumped over the past couple of years on slow telecom spending, but strong second-quarter results -- adjusted EPS of $0.18 on revenue of $429.4 million versus the consensus of $0.14 and $424.2 million, respectively -- reinforces recent optimism over rebounding demand. Adjusted operating margins even expanded from 9.2% in the previous quarter to 11.3%, suggesting that its competitive position is improving as well.

Now what: Management now expects third-quarter revenue of $405 million-$425 million, pretty much in line with Wall Street's view of $413 million. "We are pleased with the progress we've made in aligning our product portfolio with customer spending priorities, resulting in a high percentage of revenue from new products and a positive impact on financial results," said CEO Tom Waechter. "We are well-positioned for growth opportunities in 2013." With the stock now up a whopping 50% over just the past three months, however, I'd wait for some of the exuberance to fade before buying into those opportunities.

Interested in more info on JDS? Add it to your watchlist.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.