Jabil Circuit: Visibility Is Back
Darspal S Mann
Darspal S Mann
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.
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. 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. 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. 9, 2015, 9:49 AM
- Citing valuation and earnings expectations, Stifel has downgraded Jabil (NYSE:JBL) ahead of its Dec. 16 FQ1 report.
- The contract manufacturer was up 19% YTD going into today, after having jumped in September thanks to an FQ4 beat and strong FQ1 guidance.. Shares go for 9.6x an FY16 (ends Aug. '16) EPS consensus of $2.57.
Sep. 25, 2015, 12:44 PM
Sep. 24, 2015, 5:37 PM
Sep. 24, 2015, 4:22 PM
- Jabil Circuit (NYSE:JBL) is up 8.4% after hours, following a fiscal Q4 report where it easily beat expectations and raised guidance for Q1.
- The company swung to a GAAP profit of $87.7M and return on invested capital increased to 15.9% from a year-ago 1.5%. Core operating income was $162.9M, up from a year-ago $79.5M.
- Revenue by segment: Diversified Manufacturing Services, $1.9B; Electronics Manufacturing Services, $2.8B.
- The company boosted guidance for Q1 revenues to $5.1B-$5.3B, higher than a consensus $4.9B, and GAAP EPS of $0.56-$0.74 vs. a consensus of $0.54. It's expecting Electronics Manufacturing Services revenue to be consistent Y/Y, but a 33% increase in Diversified Manufacturing Services.
- Conference call to come at 4:30 p.m. ET.
Sep. 24, 2015, 4:04 PM
- Jabil Circuit (NYSE:JBL): FQ4 EPS of $0.53 beats by $0.08.
- Revenue of $4.68B (+15.3% Y/Y) beats by $130M.
- Shares +8%.
Jun. 18, 2015, 9:22 AM
Jun. 17, 2015, 4:45 PM
- In addition to missing FQ3 revenue estimates (while posting in-line EPS), Jabil (NYSE:JBL) is guiding for FQ4 revenue of $4.45B-$4.65B, below a $4.74B consensus. EPS guidance of $0.40-$0.50 compares with a $0.47 consensus. No direct explanation is given in the earnings release for the sales forecast, but Jabil suggests "the current macro environment" is weighing on results.
- Diversified Manufacturing Services (DMS), boosted by strong Apple-related orders, is expected to rise 35% Y/Y in FQ4. However, Electronics Manufacturing Services (EMS) orders are only expected to rise 1.5%.
- Financials: FQ3 DMS revenue totaled $1.6B, and EMS revenue $2.8B. Helping EPS meet estimates: Gross margin was 8.6%, +10% Q/Q and +290 bps Y/Y. SG&A spend rose 20% Y/Y to $228.5M, and R&D rose 22% to $7M. Jabil ended FQ4 with $963M in cash, and $1.67B in debt.
- Shares have fallen to $22.50 AH. Needham's pre-earnings upgrade wasn't well-timed.
- FQ3 results, PR
Jun. 15, 2015, 8:55 AM
- Citing Apple orders and strength in other parts of its diversified manufacturing services (DMS) ops, Neehham's Sean Hannan has upgraded Jabil (NYSE:JBL) to Buy ahead of Wendesday's FQ3 report, and set a $29 target. Shares +1.9% premarket to $24.59.
- Hannan: "[W]e believe business with AAPL is performing quite well, not only in terms of riding the successful iPhone platform but also in terms of the degree of diversification and increased wallet penetration ... We further believe that momentum in other areas of DMS (i.e., other mobile customers, Nypro) has been fairly healthy, adding both diversification and growth. While we suspect an improved [free cash flow] period seems more likely to be pushed to F17+, we are comfortable with the pace of investments and positive on top and bottom line prospects."
- His target is equal to 12.2x an FY16 (ends Aug. '16) EPS estimate of $2.37. 3 months ago, Cross Research upgraded ahead of Jabil's FQ2 report. That call worked out well.
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
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