Jabil Circuit Slips On Soft Guidance

Jabil Circuit Inc. shares fell as the company offered soft earnings and revenue guidance for its next two quarters. Jabil posted a revenue gain of 27% in 2Q07 to $2.9 billion, surpassing analyst expectations of $2.83 billion. Full financial reporting for the recent quarter are not yet available as the company concludes an investigation and possible restatement of past earnings. Looking ahead, Jabil is predicting EPS in 3Q07 of between -$0.08 and +$0.04, excluding one-time expenses, or $0.17-$0.23 before expenses on revenue of $2.9 billion to $3 billion. Thomson consensus estimates were for EPS before expenses of $0.44 on $3.04 billion revenue. In 4Q07, the company projects EPS before expenses of $0.29-$0.34 on sequentially flat revenue of $2.9 billion to $3 billion. Analysts were looking for EPS of $0.50 on $3.18 billion revenue. Jabil said it expects to complete its buyout of Taiwan Green Point Enterprises during the last week of April. Shares fell $1.43, or 5.74%, to $23.50 - just above their 52-week low - in after hours action, compounding a loss of $1.07, or 4.12% during regular trading yesterday.

Sources: Jabil Circuit F2Q07 (Qtr End 2/28/07) Earnings Call Transcript, Press Release, Reuters, Forbes, emsnow.com
Commentary: Jabil Circuit Sinking On Weak Outlook • Jabil Stock Drops Hard on Restatement
Stocks/ETFs to watch: Jabil Circuit Inc. (JBL). Competitors: Solectron Corporation (SLR), Flextronics International (FLEX), Sanmina-SCI Corporation (SANM)

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