JDS Uniphase Earnings: Here’s Why Investors are Selling Shares Now

JDS Uniphase Corporation (NASDAQ:JDSU) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.62%.

JDS Uniphase Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.33% to $0.13 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Decreased 4.1% to $421.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: JDS Uniphase Corporation reported adjusted EPS income of $0.13 per share. By that measure, the company met the mean analyst estimate of $0.13. It missed the average revenue estimate of $430.59 million.

Quoting Management: “JDSU executed well on its strategic priorities in fiscal Q4,” said Tom Waechter, JDSU’s President and Chief Executive Officer. “Bookings were strong across all three segments, particularly in CommTest and CCOP, resulting in an overall book-to-bill above 1. We generated over $57 million of cash from operations and exited the quarter with net cash of $516 million. We saw improved demand in a number of areas such as gesture and datacom, which partially offset lower than expected customer demand for optical components in the telecom space. We look ahead to fiscal 2014 with a strategically differentiated and market-leading product portfolio, improved operating leverage and a solid balance sheet.”

Key Stats (on next page)…

Revenue increased 3.95% from $405.3 million in the previous quarter. EPS increased 30% from $0.10 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.14 and has not changed. For the current year, the average estimate is a profit of $0.56, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)