Shares of JDS Uniphase UP, CSFB Keeps Buy Rating
Shares of JDS Uniphase Corp. (JDSU ) were trading higher after it posted higher earnings compared to a year ago. Credit Suisse First Boston, meanwhile, maintained its buy investment rating on the maker of optical networking equipment.
JDS Uniphase recorded second quarter earnings per share on a pro forma basis of $0.21 compared to $0.09 a year ago. The company also lowered its third quarter estimates for sales growth to 7% to 10% sequentially.
Analyst James Parmelee said the results were in line with his expectations, and long-term fundamentals remain intact. The analyst also added he's fine-tuning his estimate for third quarter revenue to reflect customer inventory adjustments, and uncertain near term capital spending. He also lowered his fiscal 2002 sales estimates to $5.7 billion from $6.15 billion.
Parmelee said the revised EPS guidance removes overhang on the stock; and the projected closure of the merger with SDL Inc. February should serve as an additional catalyst. He sees a fiscal 2001 EPS of $0.82, and a fiscal 2002 EPS of $1.10. Shares of JDS Uniphase were up 3-5/16 at 58-1/2.