Jabil Circuit Inc.NYSE
Jabil Circuit: Visibility Is Back
Darspal S Mann
Darspal S Mann
Wed, Dec. 7, 10:26 AM
- From Buy prior, citing a lack of catalysts to balance out perceived decrease in iPhone 7 sales, unattractive current valuation and downside potential for consensus forecasts.
- Lowers target on Jabil Circuit (JBL -1.8%) from $27 to $24 (current price $21.15).
Thu, Oct. 20, 4:45 PM
Thu, Sep. 22, 3:00 PM
Thu, Sep. 22, 1:08 PM
- Jabil Circuit (JBL -5.4%) posted better-than-expected Q4 results while announcing a restructuring plan expected to cost $195M over the next two years.
- Analyst Sean Hannan, on the report, downgrades from a previous Buy rating citing customer sell-through uncertainty and fairly valued shares. Does note positives involving Nypro, EMS and a consistent position regarding its relationship with Apple.
- The rating adjustment contrasts with a more confident tone struck by UBS prior to yesterday's earnings release.
Thu, Sep. 22, 9:18 AM
Wed, Sep. 21, 4:18 PM
- Jabil Circuit (NYSE:JBL) posts revenue of $4.43B, down 5.3% on the prior year period, and fiscal year net revenue for 2016 of $18.4 billion.
- Q4 GAAP operating income of $93.8M and core operating income of $108.3M.
- Projects Q1 2017 net revenue of $4.8B-$5B, GAAP operating income of $82M-$152M, GAAP net diluted EPS of $0.05-$0.36, core operating income of $175M-$225M and core diluted EPS of $0.54-$0.74. Forecasts 12% Y/Y net revenue decrease for Diversified Manufacturing Services segment, unchanged revenue for Electronics Manufacturing Services segment and a 6% Y/Y total company revenue decrease.
- Global capacity and administrative support restructuring planned. Expects total charges of $195M over a two year time frame. Estimates $120M-$150M to be realized in FY 2017 with the remainder in FY 2018. Cash component expected to be $50M with $25M recorded in FY 2017.
- Conference call
- Press release
Wed, Sep. 21, 4:03 PM
Wed, Sep. 21, 2:25 PM
- Analyst Steven Milunovich moves from Neutral to Buy while raising his price target from $20 to $27 (current price $23.66).
- Attributes an uptick in Apple business, a projected significant free cash flow rise ($2.60 per share in FY 2017) and expectations for management to begin scripting a more aggressive story.
- Increases FY 2017 EPS estimates from $2.10 to $2.16 and forecasts DMS and total revenue to increase 3% in FY 2017 and escalate to respective 10% and 6% levels in FY 2018 on iPhone 8 prospects.
- Jabil Circuit (JBL +2%) is trading up 10% since last Thursday and around 25% over the last three months.
- Earnings to come after the close.
Tue, Sep. 20, 5:35 PM
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.
- 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
- Jabil Circuit (NYSE:JBL) declares $0.08/share quarterly dividend, in line with previous.
- Forward yield 1.79%
- Payable June 1; for shareholders of record May 16; ex-div May 12.
Thu, Mar. 17, 9:15 AM| Thu, Mar. 17, 9:15 AM