Earnings Preview: Jabil Circuit, Inc

| About: Jabil Inc. (JBL)
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Company Profile

Jabil Circuit, Inc., together with its subsidiaries, provides electronic manufacturing services and solutions worldwide. Jabil operates in three segments: Diversified Manufacturing Services (DMS), Enterprise & Infrastructure (E&I) and High Velocity Systems (HVS).

Jabil Circuit (NYSE:JBL) is scheduled to report its third quarter earnings results on June 19, 2012, after market close.

Technical Overview

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Jabil Circuit has a market cap of $3.96 billion and it is currently trading around $19.30 with a 52 week range of $13.94 to $27.40. The stock has -2.03% price performance for the year 2012. The following table provides the key financial ratios for Jabil Circuit:

Key Ratio Value
Current Ratio 1.33
PEG 0.75
P/E 9.62
Forward P/E 6.36
Profit Margin 2.53%
Return On Assets (ROA) 6.27%
Return On Equity (ROE) 22.65%

Recent News and Analyst Ratings

  • On May 15, 2012 Bank of America (NYSE:BAC)/Merrill Lynch upgraded Jabil Circuit from NEUTRAL to BUY.
  • On May 4, 2012 Needham & Company reiterated a BUY rating on Jabil Circuit and set the price target as $29.00.
  • On April 30, 2012 Thomson Reuters/Verus downgraded JABIL CIRCUIT INC from BUY to HOLD.
  • On April 26, 2012 EVA Dimensions, LLC upgraded Jabil Circuit from HOLD to OVERWEIGHT.
  • On April 19, 2012, Jabil Circuit announced that the board of directors approved a dividend of 0.08 per share. The dividend is payable on June 1, 2012 to shareholders of record on May 15, 2012.
  • On April 14, 2012 Market Edge downgraded Jabil Circuit from BUY to HOLD.
  • On April 6, 2012 Ativo Research downgraded Jabil Circuit from FAVORABLE to NEUTRAL.
  • On March 30, 2012 Ford Equity Research upgraded Jabil Circuit from FAVORABLE to MOST FAVORABLE.
  • On March 23, 2012 Ford Equity Research upgraded Jabil Circuit from NEUTRAL to FAVORABLE.

Analyst Guidance and Earnings History

The third quarter revenues are expected to be $4.30 billion when compared to $4.23 billion for the same quarter last year. Earnings per share for the third quarter are expected to be 65 cents a share, up from 58 cents a share in the year-ago period.

The average price target from analyst for Jabil Circuit is $29.68 with average rating is OVERWEIGHT

Out of the last 4 quarters, Jabil Circuit has met or exceeded the EPS estimates all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for Jabil Circuit:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in JBL over the next 72 hours.