What are JDSU's current and projected earnings?It depends who you ask. After the Rule Maker added JDSU to its portfolio it caught my eye as a possible candidate to my personal portfolio, but before I made any buy orders I was going to do some thorough research. First I looked up JDSU using the MF's "Quote & Data." I checked its "earnings per share" which were -1.85. Fair enough. Next I wanted to see its past earnings and future projections, for this task I chose www.nasdaq.com which has simple yet detailed charts. To my surprise, according to www.nasdaq.com JDSU has been profitable all year, which is directly contrary to MF charts and even the 10-Q of JDSU (which also posted a loss). Hmm... does the www.nasdaq.com have a secret alliance with JDSU to artificially inflate its price and consequentiely inflate the nasdaq. All this my merely attracting naive investers with false profits. Maybe... But maybe someone else has a Foolish take on this puzzling error.
To my surprise, according to www.nasdaq.com JDSU has been profitable all year, which is directly contrary to MF charts and even the 10-Q of JDSU (which also posted a loss). This difference basically comes down to how you view merger related charges (e.g., acquired in-process R&D, amortization). If you leave them in, then JDUS is not profitable. If you exclude them it is. Personally, I exclude them as explained in this post: http://boards.fool.com/Message.asp?id=1030004002519000&sort=postdatePhil
JDSU is profitable when you exclude the "Amortization of Purchased Intangibles" from JDSU's operating expenses. The rationale behind this is because JDSU elected to account for the merger of JDS Fitel and Uniphase as a purchase amortized over five years. This charge will be recurring for the next five years so you should expect their reported net income to be negative for quite some time. Actually the charge will probably grow even larger since JDSU's shopping spree isn't over yet.Marv
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