Maybe that is changing.  Shares are surging in after-hours trading after the company blew the handle off of some estimates with its earnings report, despite earnings lower year over year.  Net revenues came in at $399.2 million and net income was $0.09 EPS or $21.2 million.  BUT… before items and charges, JDSU would have posted EPS at $0.22.   First Call had estimates pegged at $0.12 EPS on revenues of $386.39 million.

The optical components and fiber optic makers gave strong enough guidance as well.  JDSU said it now expects next quarter’s non-GAAP revenue to be $380 to $402 million and non-GAAP operating margin to be in the range of 4-7%.  First Call has estimates at $390+ million revenues.

Before calling this a success in a turnaround, we would probably rather see another couple quarters of strong orders.  We’d also caution that this successful post-earnings trading is on the heels of a significant stock drop.  This one got low enough that we even got to review it for our "10 Stocks Under $10" subscriber letter. 

Shares closed down almost 3% at $10.16 in normal trading but shares are up about 18% to $12.05 in an after-hours relief rally.  JDSU’s 52-week trading range is $9.49 to $17.15 and shares were nearly $15 just 90-days ago.

Jon C. Ogg
February 5, 2008