Jabil Circuit Inc.
(
JBL
) is set to announce its fiscal third quarter 2012 results after
the closing bell on June 19, 2012. In the run up to the earnings
results, we did not notice any substantial movement in analysts'
estimates for the quarter.
Prior Quarter Highlights
The company reported second quarter 2012 earnings of 48 cents
per share, which missed the Zacks Consensus Estimate by a penny.
However, earnings increased 8.1% year over year from 45 cents per
share (including stock-based compensation but excluding
amortization), primarily driven by solid top-line growth.
Revenues increased 7.8% year over year to $4.24 billion and
edged past the high end of management's guided range of $4.0
billion to $4.2 billion. Quarterly revenues surpassed the Zacks
Consensus Estimate of $4.10 billion. Higher quarterly revenues were
attributable to market share gains, new customer wins and strong
growth from the emerging markets.
Jabil expects net revenue in the range of $4.2 billion to $4.4
billion for the third quarter of 2012 (up approximately 2.0% on a
year-over-year basis). Revenue estimate as per Zacks Consensus is
pegged at $4.29 billion. Jabil expects non-GAAP earnings per share
to be between 60 cents and 70 cents for the third quarter.
For further details please see:
Jabil Reports Mixed 2Q
Estimation Revisions Trend
Over the past 30 days, none of the five analysts covering the
stock revised their estimates. Thus, the Zacks Consensus Estimate
for the third quarter stayed at 56 cents per share. Analysts'
estimates range from 55 cents to 58 cents.
Though Jabil has a positive average earnings surprise of 0.68%,
the company has failed to beat the Zacks Consensus Estimate in
three out of the four preceding quarters. For the current quarter,
analysts covering the stock expect Jabil to be negatively affected
by the weaker-than-expected results of its customers, such as
Cisco Systems Inc.
(
CSCO
),
NetApp Inc.
(
NTAP
),
Research In Motion Ltd.
(
RIMM
) and
Hewlett-Packard Co.
(
HPQ
).
However, Jabil's Diversified Manufacturing Segment ("DMS") is
expected to witness top-line expansion on the back of
Apple Inc.
's (
AAPL
) new iPhone in the forthcoming quarter. Moreover, the shift
towards higher margin DMS segment is expected to drive margins in
the long run.
Our Take
Jabil is expected to benefit from strong growth in the Mobility,
Aerospace and Defense, Healthcare, Instrumentation and Industrial,
Clean Tech, Networking and Storage segments over the long term.
Moreover, expansion of global business and strategic acquisitions
are positives for the stock.
However, the company faces strong competition from
Flextronics Inc.
(
FLEX
) and
Sanmina-SCI Corp.
(
SANM
), which along with the high debt level and sluggish economic
conditions in Europe and the U.S. are the near term headwinds going
forward.
Currently, Jabil has a Zacks #4 Rank, which implies a 'Sell'
rating on a short-term basis.
APPLE INC (AAPL): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis
Report
FLEXTRONIC INTL (FLEX): Free Stock Analysis
Report
HEWLETT PACKARD (HPQ): Free Stock Analysis
Report
JABIL CIRCUIT (JBL): Free Stock Analysis Report
NETAPP INC (NTAP): Free Stock Analysis Report
RESEARCH IN MOT (RIMM): Free Stock Analysis
Report
SANMINA-SCI CP (SANM): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research