Electronic manufacturing services provider
Jabil Circuit Inc. (
is set to report third-quarter fiscal 2014 results on Jun 18, 2014.
In the previous quarter, the company delivered a positive earnings
surprise of 50.0%. On an average, Jabil has delivered positive
earnings surprise of 22.63% in the last four quarters.
Let's see how things are shaping up for this quarter.
Growth Factors in the Past Quarter
Jabil reported mixed second-quarter 2014 results. The disengagement
with BlackBerry is expected to negatively impact top-line growth
and profitability over the next couple of quarters.
Jabil expects net revenue to be in the range of $3.5 to $3.7
billion for the third quarter of fiscal 2014, down 14.0% from
third-quarter fiscal 2013. Operating income is projected to be in
the range of $20.0 to $60.0 million. The company expects to report
loss of 20 cents or break-even for the to-be-reported quarter.
Jabil's growing relationship with
is a significant positive. Estimated strong growth from the Nypro
acquisition, restructuring benefits and customer wins will boost
Jabil's competitive position in the near term.
Our proven model does not conclusively show that Jabil is likely to
beat earnings this quarter. That is because a stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here as you will see below.
Jabil currently has an Earnings ESP of 0.00%. This is because both
the Most Accurate estimate and the Zacks Consensus Estimate stand
at a loss of 15 cents.
Jabil has a Zacks Rank #3 (Hold), which when combined with a 0.00%
ESP makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are other companies you may want to consider as our model
shows that they have the right combination of elements to post an
earnings beat this quarter:
Micron Technology (
, Earnings ESP of +8.7% and a Zacks Rank #1 (Strong Buy).
Lindsay Corp (
, Earnings ESP of +3.1% and a Zacks Rank #3.
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