Jabil Circuit Jumps On Beat, Strong Forward Sales Guidance

Contract electronics manufacturer Jabil Circuit Inc. reported profits dropped 90% in its latest quarter due to large one-time expenses. But earnings results were better than consensus estimates, as were sales forecasts, sending shares higher by 8% in AH trading. Shares had already gained 2.76% during regular trading. Net income was $6.2 million ($0.03/share), vs. EPS of $0.30 in the prior-year period. Excluding one-time restructuring costs ($19.4 million), amortization costs ($7.5 million) and stock-based compensation costs ($14.3 million), EPS would have been $0.23. Consensus analyst estimates were for EPS of $0.21. Revenue climbed 16% to $3 billion, slightly higher than consensus estimates of $2.95 billion. Looking ahead, Jabil expects sales of $3 billion in its next quarter, vs. a consensus prediction of $2.97 billion. President and CEO Timothy L. Main told analysts on the conference call: "A year ago, we entered what has turned out to be an extremely challenging period for us. We are not where we wanted to be a year ago, but we are not necessarily at such a bad place either." Shares had been down 13.6% YTD.

Sources: Earnings Call Transcript, Press release, Reuters, Bloomberg, AP, Dow Jones Newswires
Commentary: Cognos, Jabil Report In-Line With Expectations • Contract Electronics Manufacturing: Tough Place to Make Money • Jabil Circuit Slips On Soft Guidance
Stocks/ETFs to watch: Jabil Circuit (JBL). Competitors: Solectron Corporation (SLR), Flextronics International (FLEX), Sanmina-SCI Corporation (SANM)

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