JDS Uniphase Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component JDS Uniphase Corporation (NASDAQ:JDSU) will unveil its latest earnings on Wednesday, May 2, 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 estimate of analysts is for profit of 7 cents per share, a decline of 58.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 13 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 7 cents during the last month. For the year, analysts are projecting net income of 47 cents per share, a decline of 35.6% from last year.

Past Earnings Performance: The company beat estimates last quarter by reporting profit of 6 cents per share against a mean estimate of net income of 4 cents.

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A Look Back: In the second quarter, the company swung to a loss of $10.2 million (4 cents a share) from a profit of $23.6 million (10 cents) a year earlier, but beat analyst expectations. Revenue fell 12.8% to $412.8 million from $473.5 million.

Stock Price Performance: Between March 28, 2012 and April 26, 2012, the stock price dropped $2.37 (-16.2%), from $14.59 to $12.22. The stock price saw one of its best stretches over the last year between February 2, 2012 and February 13, 2012, when shares rose for eight straight days, increasing 15.5% (+$1.89) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 20.1% (-$2.40) over that span.

Wall St. Revenue Expectations: On average, analysts predict $420 million in revenue this quarter, a decline of 7.5% from the year-ago quarter. Analysts are forecasting total revenue of $1.71 billion for the year, a decline of 5% from last year’s revenue of $1.8 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 36.6% in the third quarter of the last fiscal year, 20.7% in the fourth quarter of the last fiscal year and 3.8%in the first quarter before dropping in the second quarter.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.41 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.46 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.5% to $382.6 million while assets rose 2.8% to $1.3 billion.

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

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