Electronic manufacturing services provider
Jabil Circuit Inc.
) is set to report second-quarter fiscal 2014 results on Mar 19,
2014. In the previous quarter, the company delivered a positive
earnings surprise of 34.0%. Let's see how things are shaping up
for this quarter.
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Factors in the Past Quarter
Jabil reported better-than-expected first-quarter results.
However, management's cautious guidance was a concern. The
) was a major reason behind the lackluster guidance. Jabil also
divested its aftermarket segment, which will lower revenues in
the coming quarter.
Jabil expects net revenue to be in the range of $3.5 to $3.7
billion for the second quarter of fiscal 2014, down 17.0% from
second-quarter 2013. The company projects operating income in the
$40.0 to $80.0 million range for the second quarter of 2014. The
company expects non-GAAP earnings to be between 5 cents and 15
cents per share for the second quarter.
Jabil's growing partnership 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 of #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
are pegged at 2 cents.
: Jabil has a Zacks Rank #4 (Sell). We caution against stocks
with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Here is another company you may want to consider as our model
shows that it has the right combination of elements to post an
earnings beat this quarter:
), Earnings ESP of +11.8% and a Zacks Rank #2 (Buy).