Jabil Circuit Inc
) is set to report fiscal first quarter 2014 results on Dec 17,
2013. In the prior quarter, the company posted negative earnings
surprise of 4.15%.
However, the company posted an average positive earnings
surprise of 4.27% over the past four quarters. Let's see how
things are shaping up for the company in this quarter.
Growth Factors This Past Quarter
The company reported better-than-expected fiscal
fourth-quarter 2013 results. Earnings of 48 cents per share beat
the Zacks Consensus Estimate by a penny, while revenues were well
ahead of the consensus mark.
Revenues increased 11.0% from the year-ago quarter to $4.81
billion, much better than management's guided range of $4.45
billion to 4.65 billion. The year-over-year growth was primarily
driven by strong performance across all the segments.
Moreover, the company's main near-term challenge is to manage
its exposure to BlackBerry Ltd. Which constitutes almost 12
% of its sales in fiscal 2013.Jabil is all set to disengage with
Blackberry, which is evident from the decline in its handset
production of BlackBerry.
The Zacks Consensus Estimate for the first quarter stands at
47 cents per share while that for fiscal 2014 is $1.93 per share.
There have been no estimate revisions over the last 30 days. The
Zacks Consensus Estimate for 2013 and 2014 however declined over
the last 30 days.
The lack of any movement in estimates signals the fact that
there might not be too much of a positive development over the
last one month. This is also indicated by that fact that the
stock carries 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
Other Stocks to Consider
Our model states that a stock needs to have both a positive
and a Zacks Rank of #1, #2 or #3 to beat earnings estimates. You
could, however, consider the following stocks that satisfy both
BLACKBERRY LTD (BBRY): Free Stock Analysis
FACTSET RESH (FDS): Free Stock Analysis
JABIL CIRCUIT (JBL): Free Stock Analysis
TIBCO SOFTWARE (TIBX): Free Stock Analysis
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) has a Zacks Rank #2 (Buy) and Earnings ESP of +4.03%
) has a Zacks Rank #3 (Hold) and Earnings ESP of +4.35%
) has a Zacks Rank #3 (Buy) and Earnings ESP of +3.13%.