NEW YORK (TheStreet) -- JDS Uniphase (JDSU) was rising 6.76% to $13.58 shortly after the market opened on Friday after the fiber-optics components vendor reported second-quarter results that beat analysts' expectations.
Revenue rose 4% year-over-year to $447.6 million, allowing JDS Uniphase to earn 19 cents per share. Analysts had expected earnings of 14 cents on $433.7 million in sales. Gross profit margin also ticked upward to 48.5% from 48% in the same period one year earlier, while operating margin inched downward to 11% from 11.4%.
The company also projected third-quarter revenue in the range of $420 million to $440 million, which surpassed analysts' expectations of $426 million.
"Our fiscal second quarter results exceeded our guidance expectation with gross margin improvements across all three segments," said President and CEO Tom Waechter in the company's statement. "We are pleased with the performance of our organic business, the progress of our continuing investments in new offerings which align with customer requirements and market trends, and our continuing M&A strategy to expand our product portfolio into mobility and service enablement. We believe JDSU is well-positioned to leverage our technical leadership in new markets in network infrastructure, commercial lasers and anti-counterfeiting in calendar 2014."
TheStreet Ratings team rates JDS UNIPHASE CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate JDS UNIPHASE CORP (JDSU) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."