Scott Moritz
The optical-networking sector has brightened ahead of financial reports this week from JDSU (JDSU Quote - Cramer on JDSU - Stock Picks) and Ciena (CIEN Quote - Cramer on CIEN - Stock Picks).
Thanks to an upbeat report Monday from fiber-optic component maker Avanex (AVNX Quote - Cramer on AVNX - Stock Picks), there is a little warming trend in a corner of the market that tends to run either very cold or scorching hot. The Fremont, Calif., tech shop saw its shares jump 18% after it raised sales guidance for its fiscal first quarter ending in September. Investors will find out if momentum has indeed returned to networking stocks when ADC Telecom (ADCT Quote - Cramer on ADCT - Stock Picks) reports its fiscal third-quarter results after the market's close Tuesday. Earlier this month, the Minneapolis phone-system gearmaker's merger offer was rejected by wireless-infrastructure supplier Andrew (ANDW Quote - Cramer on ANDW - Stock Picks). The deal's demise came as good news to investors. They knocked some 40% off ADC's value in June and July, but shares in the company have bounced back about 14% in the past two weeks. ADC had seen Andrew as an entry strategy into the wireless-networking business, but industry observers and investors failed to see the upside and anticipated an expensive integration headache ahead. Analysts are looking for an adjusted profit of 26 cents a share on $339.6 million in revenue for ADC's fiscal third quarter. The information from the networking front will continue to pour in later this week: JDSU releases its numbers Wednesday, and optical shop Ciena delivers its financial report Thursday morning.
RSS
