Jabil's Quarter In Line, But Outlook Falls Way Short

Jabil Circuit (JBL) this afternoon reported revenue for its fiscal second quarter ended February 28 of $3.1 billion, with “core earnings” of 20 cents a share, a bit ahead of the Street at $3.04 billion and 18 cents.

But the contract electronics manufacturer provided disappointing forward guidance, noting that it will see “a year of modest growth by below our previous expectations.” Jabil said in a statement that “it appears the slowdown in end markets will reduce our growth rate and impede margin expansion for the next quarter or two.”

For FY Q3, the company sees revenue of $3.05 billion to $3.15 billion, with core EPS of 18-22 cents; the Street has been looking for $3.25 billion and 34 cents.

For the August 2008 fiscal year, Jabil sees revenue of $12.6 billion to $12.8 billion, with EPS of $1 to $1.16 a share; the Street has been expecting $13.1 billion and $1.29.

In after hours trading, Jabil is down 90 cents, or 7.9%, at $10.48.

Comments

[Paul Price]

At just over 10X reduced estimates I'm a buyer.