MidnightTrader's Earnings Play: JDS Uniphase

JDS Uniphase (JDSU | Quote | Chart | News | PowerRating) is due to report its Q3 results after the bell tonight, and analysts polled by Thomson Financial are expecting the company to have revenue of $393.6 million and a profit of $0.13 per share.

JDSU is one to watch for potential next-day wider movement as the stock has seen more aggressive next-day action following 14 of its last 17 after-hours earnings events. The near-term performance favors widening, as the issue has expanded its move during next-day trading in four straight quarters.

On Feb. 5, 2008, the stock jumped 19.6% as JDSU beat with Q2 results. The gain expanded the next day, to 26%.

On Oct. 31, 2007, the stock fell 1.7% in evening trading despite a beat with the latest results; revenue guidance straddled the Street mean. The loss widened to 3.9% the next day.

On Aug 22, 2007, JDSU gained 3% in night trades after beating Q4 estimates and guiding for Q1 to be in line to above expectations. Shares, though, reversed course and closed the next day session down 5%.

On May 2, 2007, the stock fell 9.8% after the company beat with sales but guided below the Street. The loss was a deeper 13.8% the next day.

On Jan. 31, 2007, JDSU slipped 2.3% in the evening session despite swinging to a Q2 profit that topped Street views. Shares fell even further the next day, closing the regular session down 6%.

Brooks McFeely is widely regarded as the leading expert on extended-hours trading. He is a Managing Partner for Brochet Capital Partners, LP and the founder of Midnight Trader, Inc. (www.midnighttrader.com), the leading provider of pre-market and after-hours trading analysis and news to retail and institutional investors.