Jabil Circuit: Visibility Is Back
Darspal S Mann
Darspal S Mann
Thu, Jul. 21, 4:30 PM
Fri, Jul. 15, 9:57 AM
- Jabil Circuit (NYSE:JBL) rises as high as $20.26 after Raymond James upgrades to Strong Buy from Outperform.
- Price target to $26 from $21. Implied upside 29%.
- Firm says meaningful cash flow and capital return inflection points are being overshadowed by volatility with top customer (Apple, 24% of revenue), driving sub-par earnings.
- With fundamentals bottoming, sentiment should improve into Sept. 27 analyst day.
- Diversification and discipline initiatives likely to be well-received by investors.
- Firm sees FCF/share doubling by FY18 to more than $3.
Wed, Jun. 15, 4:06 PM
- Jabil Circuit (NYSE:JBL): FQ3 EPS of $0.17 beats by $0.01.
- Revenue of $4.31B (-1.1% Y/Y) beats by $130M.
- Expects FQ4 revenue of $4.15B-$4.35B and EPS of $0.15-$0.35, below a consensus of $4.66B and $0.53.
- $400M buyback announced.
- Shares -7.8% after hours.
- Press Release
- Update: CEO Mark Mondello: "[A]s expected, our third quarter results also reflected a soft environment within our mobility business. These challenges will continue to negatively impact our Diversified Manufacturing Services business for the balance of our fiscal year." Apple is a major mobile client.
- Update 2 (4:20PM ET): Jabil has quickly erased its losses: Shares are now up 0.4%. Near-term expectations were low given iPhone 6S sales pressures ahead of this fall's expected iPhone 7 launches.
Tue, Jun. 7, 10:22 AM
- "While we expect in line 2HFY16 results/guidance as FY16 consensus EPS has been reduced by 19 percent since last quarter, we now see 6 percent downside to FY17 Street EPS and 13 percent downside to CY17 Street estimate," writes Goldman's Mark Delaney, downgrading Jabil (JBL -2%) to Sell ahead of its June 15 FQ3 report. His target has been cut by $2 to $17.
- Delaney is worried about Jabil's phone and printer exposure - Apple, whose sales have been under pressure, is a major client - as well as rising SG&A and depreciation expenses. He points out consensus estimates have been lowered for 7 of the company's top 10 clients since the FQ2 report, and thinks Apple's rumored adoption of glass enclosures for 2017 iPhones could pressure the contract manufacturer's margins.
- Jabil sold off in March after missing FQ2 estimates and issuing light FQ3 guidance, while blaming its outlook on "reduced demand in mobility." Shares now go for just 8x an FY17 (ends Aug. '17) EPS consensus of $2.44.
Mon, Apr. 25, 7:34 PM
- Contract manufacturer Jabil (NYSE:JBL) will now handle the production of MakerBot's desktop 3D printers. MakerBot will shut down its Brooklyn manufacturing ops and lay off an undisclosed number of workers. Other MakerBot teams will remain in Brooklyn.
- MakerBot CEO Jonathan Jaglom: "It’s a specific, painful decision in the sense that we’re going to have to let some people go, but it’s captured over a much broader strategic decision ... We need to be able to manufacture printers on a much higher volume in the coming years."
- MakerBot has been the subject of multiple layoffs and Stratasys (NASDAQ:SSYS) write-downs since Stratasys bought the company for over $400M in 2013. However, it’s still a top player in a market for desktop 3D printers that’s outgrowing the broader 3D printing/additive manufacturing market. Research firm Wohlers recently estimated desktop 3D printer shipments rose nearly 70% in 2015 to 278,385.
- Stratasys has been looking for ways to cut costs amid a 3D printing industry downturn driven by excess capacity at industrial printer buyers. GAAP operating expenses rose only 4% Y/Y in Q4.
Thu, Apr. 21, 4:15 PM
Thu, Mar. 17, 9:15 AM| Thu, Mar. 17, 9:15 AM
Wed, Mar. 16, 5:39 PM
Wed, Mar. 16, 4:05 PM
- Jabil Circuit (NYSE:JBL): FQ2 EPS of $0.57 misses by $0.03.
- Revenue of $4.4B (+2.1% Y/Y) misses by $100M.
- Expects FQ3 revenue of $4.1B-$4.3B and EPS of $0.12-$0.18, below a consensus of $4.75B and $0.51.
- Expects FY16 (ends Aug. '16) revenue of $18.5B and EPS of $2.12, below consensus of $19.7B and $2.60.
- CEO Mark Mondello: "Our updated outlook for the third quarter reflects reduced demand in mobility." Apple (NASDAQ:AAPL) is a major mobile client.
- Shares -13% after hours.
- Press Release
- Update (4:16PM ET): Jabil has pared its losses a bit: Shares are now down 8.7% after hours to $20.06.
Tue, Mar. 15, 5:35 PM
Tue, Mar. 8, 2:36 PM
- Skyworks (SWKS -3.1%), Qorvo (QRVO -3.5%), and Jabil (JBL -3.8%) are among the ZTE suppliers selling off after the Chinese phone/telecom equipment vendor got hit with U.S. sanctions over the alleged re-exporting of controlled items to Iran. Qualcomm and various optical component vendors are also off. The Nasdaq is down 0.6%.
- The sanctions, which have stoked fears of Chinese retaliation, require U.S. ZTE suppliers to apply for an export license. The Commerce Department says it's operating under a "policy of presumption of denial" for granting licenses.
- Bloomberg estimates Jabil's quarterly ZTE sales total ~$35M. Rosenblatt's Jun Zhang sees a major hit to Qualcomm (NASDAQ:QCOM) and Skyworks' sales. "ZTE sold 55M smartphones in 2015, and we think the halt on order shipments will affect at least 25-30M units for 2Q16 and 3Q16, even though other smartphone OEMs will take market share away from ZTE. The impact to Skyworks and Qualcomm would be around $100-200M and $300-500M, respectively." Some of those sales, of course, could be picked up by rivals also buying from Qualcomm and Skyworks.
Fri, Jan. 29, 12:11 PM
- Jabil (JBL +3.2%), Celestica (CLS +5.1%), Fabrinet (FN +4.3%), Multi-Fineline (MFLX +4.7%), Benchmark Electronics (BHE +2.4%), and TTM Technologies (TTMI +4.6%) are doing well after Flex (formerly Flextronics, up 8.5%) beat FQ3 estimates and offered in-line FQ4 guidance against a backdrop of weak PC sales, slowing smartphone growth, and Chinese macro pressures. The Nasdaq is up 1.3%.
- A rally in Apple suppliers (follows earnings/guidance from suppliers Skyworks and Synaptics) could be benefiting Jabil and Multi-Fineline. On Monday, RBC cut its Jabil target by $3 to $36 due to the company's Apple exposure. Apple issued soft guidance the next day.
- Celestica tumbled yesterday after posting mixed Q4 results and issuing light Q1 guidance. Peer Sanmina rallied on Wednesday after providing strong calendar Q1 guidance to go with a Q4 sales miss.
Thu, Jan. 21, 4:51 PM
- Jabil Circuit (NYSE:JBL) declares $0.08/share quarterly dividend, in line with previous.
- Forward yield 1.72%
- Payable March 1; for shareholders of record Feb. 16; ex-div Feb. 11.
Thu, Jan. 7, 4:22 PM
- Qorvo and Cirrus Logic have both issued calendar Q4 warnings after the bell, and indicated calendar Q1 sales will also be soft. The warnings come in the wake of reports indicating Apple has cut iPhone production and component orders.
- Fellow iPhone suppliers are selling off in response. Skyworks (NASDAQ:SWKS) -4% after hours. Avago (NASDAQ:AVGO) -4.3%. NXP (NASDAQ:NXPI) -1.6%. InvenSense (NYSE:INVN) -2.5%. Broadcom (BRCM - set to be acquired by Avago) -1.3%. Synaptics (NASDAQ:SYNA) -1.7%. Jabil (NYSE:JBL) -0.7%.
- Many of the aforementioned names had already seen steep losses in regular trading, as the Nasdaq fell 3% amid a broad market selloff.
Dec. 16, 2015, 4:26 PM
- After initially trading lower in the wake of its mixed FQ1 results (revenue slightly missed, EPS beat), Jabil (NYSE:JBL) is now up 2.1% after hours to $24.40.
- FQ2 guidance is for revenue of $4.4B-$4.7B and EPS of $0.54-$0.70 vs. a consensus of $4.72B and $0.62. However, FY16 (ends Aug. '16) sales guidance for revenue of $20B has been reiterated; consensus is at $19.9B. EPS guidance has been upped by $0.05 to $2.65; consensus is at $2.58.
- The sales guidance reiteration might be calming some investors worried about major client Apple, whose shares have been hit by downbeat iPhone supply chain news and analyst commentary.
- Jabil's FQ1 results, earnings release
Dec. 16, 2015, 4:03 PM
- Jabil Circuit (NYSE:JBL): FQ1 EPS of $0.85 beats by $0.05.
- Revenue of $5.2B (+14.3% Y/Y) misses by $10M.
- Shares -3.5%.
Jabil Circuit, Inc. provides worldwide electronic manufacturing services and solutions. The company provides electronics design, production, product management and repair services to companies in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical,... More
Industry: Printed Circuit Boards
Country: United States