JDS Uniphase First Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component JDS Uniphase Corporation (NASDAQ:JDSU) will unveil its latest earnings on Tuesday, October 30, 2012. JDS Uniphase provides communications test and measurement solutions and optical products for cable operators, telecommunications service providers and network equipment manufacturers.

JDS Uniphase Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 9 cents per share, a decline of 10% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 11 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 9 cents during the last month. Analysts are projecting profit to rise by 106.3% compared to last year’s 66 cents.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the fourth quarter of the last fiscal year, it reported profit of 10 cents per share against a mean estimate of net income of 8 cents per share. In the third quarter of the last fiscal year, it missed forecasts by 2 cents.

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A Look Back: In the fourth quarter of the last fiscal year, the company swung to a loss of $22.2 million (9 cents a share) from a profit of $9.3 million (4 cents) a year earlier, but beat analyst expectations. Revenue fell 6.9% to $439.3 million from $471.8 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.0 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 3.49 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 73.5% to $654.1 million while assets decreased 0.5% to $1.31 billion.

Stock Price Performance: Between September 26, 2012 and October 24, 2012, the stock price dropped $1.97 (-16.2%), from $12.14 to $10.17. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 13, 2012, when shares rose for eight straight days, increasing 17% (+$1.61) over that span. It saw one of its worst periods between May 1, 2012 and May 18, 2012 when shares fell for 14 straight days, dropping 19.7% (-$2.42) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 12.8% in the second quarter of the last fiscal year and 9.9% in third quarter of the last fiscal year before falling again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Wall St. Revenue Expectations: Analysts predict a rise of 1.4% in revenue from the year-earlier quarter to $426.9 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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