apparently believe the projections coming out of
, as the firms lowered their targets
a day after the optical components maker indicated that such a move would be the wise thing to do.
Nevertheless, shares of JDS defied the forecast and the analysts, recently gaining $1.63, or 4.2%, to $40.25 in trading on the
. But that move could be attributed to the fact that
Standard & Poor's
will increase JDS Uniphase's
weighting in the S&P 500 after the close tonight, to account for the just-completed acquisition of
Lehman analyst Arnab Chanda cut his 2001 earnings estimate to 74 cents a share from 81 cents and the 2002 estimate to 86 cents from $1.03 "based on sharply lower visibility."
"We continue to emphasize caution given our thesis that lower visibility will be followed by pricing weakness," Chanda wrote in a report.
Goldman analyst Natarajan Subrahmanyan also lowered his 2001 earnings estimate for JDS to 74 cents a share from 82 cents, and cut his 2002 estimate to 88 cents from $1.20.
UBS cut its price target on the company to $60 from $75, thought the firm kept its buy rating on JDS.
JDS, which yesterday completed its merger with SDL, forecast third-quarter earnings of 17 cents a share, 4 cents below the
First Call/Thomson Financial
consensus estimate. The company also forecast earnings of 74 cents a share for the fiscal year ending in June, about 8 cents shy of the consensus estimate.