Earnings season is upon us in the tech sector. What should investors expect from these reports? What are the key storylines to follow and are these stocks likely to trade higher or lower in the wake of their results?
In NextInning.com's earnings previews, available free to trial subscribers, key storylines are evaluated, analyst expectations are audited, and in depth valuation analyses are provided to develop fair value ranges for dozens of stocks. Next Inning's model portfolio has returned 293% since 2002, nearly six times the return of the S&P 500.
In its latest earnings preview, Next Inning looks at several popular stocks, including Atmel (ATML - News), DragonWave (DRWI - News), JDS Uniphase (JDSU - News), O2Micro International (OIIM - News), ON Semiconductor (ONNN - News), International Rectifier (IRF - News), Power Integrations (POWI - News), Power-One (PWER - News), QLogic (QLGC - News), and Spreadtrum Communications (SPRD - News).
Here is just a tiny sample of what Editor Paul McWilliams wrote about JDS Uniphase:
"The real reason Oclaro Inc (OCLR - News) and Opnext (OPXT - News) agreed to merge is neither company was able to grow its revenue enough to overcome the fixed costs of their respective operating models. Once the two businesses are combined and the operational synergies are realized, we should begin to see a positive bottom line. However, there will be some complications due to the fact that duplicate facilities will have to be maintained for a while, and that means probably about a year's worth of the combined entity trading with its historically high beta.
"The reason this is important to consider here is because it wasn't all that long ago when sector leaders Finisar (FNSR - News) and JDS-Uniphase were suffering with the same plight - not enough revenue to overcome fixed costs. However, through acquisition and organic growth, both have produced dependable profits since mid-2009..."
The Next Inning model portfolio is up 19% year to date versus 11% for the S&P 500. Click here to start your free 21-day trial membership to Next Inning Technology Research and get McWilliams' in depth reports, earnings previews, and real-time trade alerts.
- JDS Uniphase