JDS Uniphase Corp. (JDSU) is expected to report Q1 earnings after the market close on Thursday, November 5 with a conference call scheduled for 5 pm ET. The consensus estimate is 2c for EPS and $291.76M for revenue, according to First Call. On its last earnings call, management issued Q1 revenue guidance of $283M-$300M. JDSU shares have sold off recently based on what is expected to be a weak quarter relative to peers and consensus estimates. Thomas Weisel's analysis indicates that the sell off is likely overdone. They expect JDSU to report Q1 sales and EPS in line with their expectations of 3c on $295M in revenue, with better than expected performance in optical communications components. Looking forward: Weisel expects JDSU to provide December quarter guidance that should indicate an expectation of sequentially better metrics. EXFO Electro Optical (EXFO), a key competitor in field test, reported August quarter sales down over 30% year-over-year for its telecom segment but guided to solid sequential improvement for its November quarter. That suggests somewhat sluggish results for JDSU’s seasonally soft September quarter but boding well for its December quarter. Weisel says their below consensus FY11 estimates of 25c on $1.35B in revenue indicates that there could be some risk to consensus of 32c and $1.35B. Even if Weisel had to revise down their consensus FY11 estimates by 10%, an unlikely scenario, they still find JDSU’s valuation compelling. :theflyonthewall.com
News For JDSU From The Last 14 Days
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JDSU February and March 15 calls are active on total call volume of 7K contracts (1K puts) following renewed takeover speculation. February call option implied volatility is at 52, March is at 49; below its 26-week average of 63 according to Track Data. Elevated volume and volatility suggests larger price movement. :theflyonthewall.com
Today's noteworthy downgrades include: Autoliv (ALV) downgraded to Sell from Buy at Citigroup...JDSU (JDSU) downgraded to Neutral from Buy at UBS...Vanguard Health (VHS) downgraded to Market Perform from Outperform at Wells Fargo...Steel Dynamics (STLD) downgraded to Neutral from Buy at BofA/Merrill...AK Steel (AKS) downgraded to Underperform from Neutral at BofA/Merrill...Northrop Grumman (NOC) downgraded to Underperform from Neutral at BofA/Merrill...Sykes Enterprises (SYKE) downgraded to Neutral from Outperform at RW Baird...NYSE Euronext (NYX) downgraded to Market Perform from Outperform at BMO Capital...QuinStreet (QNST) downgraded to Hold from Buy at ThinkEquity...Edwards Lifesciences (EW) downgraded to Neutral from Outperform at Credit Suisse...Ann Inc. (ANN) downgraded to Underweight from Neutral at Piper Jaffray...Johnson & Johnson (JNJ) downgraded to Market Perform from Outperform at First Global. :theflyonthewall.com
JDSU February volatility increases into Q2 results and outlook
JDSU February put option implied volatility is at 71, March is at 58; compared to its 26-week average of 64 according to Track Data, suggesting larger near term price movement into the expected release of Q2 results today after the market close. :theflyonthewall.com
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