Earnings Preview: Jabil Circuit Reports 1Q Results Tuesday

|
 |  About: Jabil Circuit Inc. (JBL)
by: Robert Weinstein

Jabil Circuit, Inc. (NYSE:JBL) is due to report earnings after the closing bell on December 20, 2011. Below you can see the results of JBL over the last few earnings periods.

JBL trades an average of 3.5 million shares per day.

52 Week High: $23.09

52 Week Low: $13.94

Book Value: $9.18

Float Short: 4.51%

Analysts are expecting an improvement of $0.03 in earnings per share compared to last quarter's results of $0.62. A beat of $0.65 per share, will top the estimated per share earnings.

The P/E ratio has trended lower, as the current trailing twelve months (ttm) P/E ratio is 11.4, while the forward P/E ratio is now 8.4. It appears based on the lower PE that investors are pricing in less growth.

JBL is currently trading near the 200 day moving average and is the second time in about a month to break below the key support area. Price weakness with JBL is just as likely from overall market weakness as anything else. The PE ratio is so low that even a small miss in guidance should not be a concern.

For the same fiscal period year-over-year, revenue has improved to $16.52 billion for 2011 vs. $13.41 billion for 2010. The bottom line has rising earnings year-over-year of $381.06 million for 2011 vs. $168.84 million for 2010.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $578.73 million for 2011 vs. $327.57 million for 2010. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue.

paid2trade.com revenue gross bar chart for JBL Click to enlarge

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Aug-11 $ 4.19 B $ 4.28 B $ 92.58 M 2.21%
May-11 $ 4.14 B $ 4.23 B $ 85.70 M 2.07%
Feb-11 $ 3.92 B $ 3.93 B $ 6.92 M 0.18%
Nov-10 $ 3.96 B $ 4.08 B $ 117.90 M 2.97%
Aug-10 $ 3.89 B $ 3.86 B $ -30.88 M -0.79%
Click to enlarge

M = millions, B = billions

Differences are rounded. (Some onetime items are often excluded in reported EPS)

paid2trade.com Quarterly Estimates And Actual EPS results JBL Click to enlarge

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for JBL

paid2trade.com short interest tool. The total short interest number of shares for JBL Click to enlarge

The number of days to cover short interest based on average daily trading volume for JBL.

paid2trade.com number of days to cover short interest based on average daily trading volume for JBL Click to enlarge

Thank you for reading my article. Please also feel free to share your thoughts and comments.

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.