Jabil Circuit Inc. (
is scheduled to release its fiscal first quarter 2012 results
after the closing bell on December 19, 2012. In the run up to the
earnings results, we did not notice any movement in analysts'
estimates for the quarter.
Prior Quarter Highlights
Jabil reported mixed fourth quarter 2012 results. Although
earnings of 44 cents (including stock-based compensation of $21.3
million) missed the Zacks Consensus Estimate by 6 cents, revenue
of $4.34 billion was well ahead of the consensus mark.
Gross profit declined 3.5% year over year to $317.5 million,
while gross margin contracted 40 basis points ("bps") year over
year to 7.3%. Higher operating expenses had a negative impact on
profitability in the quarter. Operating income (including
stock-based compensation of $21.6 million) decreased 13.5% year
over year to $147.7 million. Operating margin was 3.4% compared
with 4.0% in the year-earlier quarter.
For further details please see
Mixed 4Q for Jabil
Estimates Revision Trend
Over the past 30 days, none of the five analysts covering the
stock made any revision to their estimates. Thus, the Zacks
Consensus Estimate for the first quarter of 2013 remained static
at 47 cents, which is down 16% from 58 cents reported in the
No revision was also noticed for the second quarter of 2013,
fiscal 2013 and fiscal 2014 with the corresponding Zacks
Consensus Estimates at 50 cents (up 4.2% year over year), $2.17
(up 7.4% year over year) and $2.62 (up 20.7% year over year),
Jabil has failed to beat the Zacks Consensus Estimate in the
last four quarters. The company's results have been negatively
impacted by higher operating expenses and weak performance from
two of its main customers,
Research In Motion (
Cisco Systems (
. Moreover, a sluggish macro environment has also hurt Jabil's
Although we don't expect the scenario to change much in the
near term, Jabil's increasing exposure to
, better-than-expected first quarter 2013 results from
and the upcoming new product release (Blackberry 10) from RIMM
bode well for the company going forward.
Thus, we remain Neutral over the long term (6-12 months).
Currently, Jabil has a Zacks #3 Rank (Hold).
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