Can Jabil Circuit (JBL) Continue its Earnings Beat? - Analyst Blog

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Electronic manufacturing services provider Jabil Circuit Inc. ( JBL ) 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 Apple ( AAPL ) 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.

Earnings Whispers

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 Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here as you will see below.

Zacks ESP: 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.

Zacks Rank: 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 ( MU ) , Earnings ESP of +8.7% and a Zacks Rank #1 (Strong Buy).

Lindsay Corp ( LNN ) , Earnings ESP of +3.1% and a Zacks Rank #3.

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APPLE INC (AAPL): Free Stock Analysis Report

LINDSAY CORP (LNN): Free Stock Analysis Report

MICRON TECH (MU): Free Stock Analysis Report

JABIL CIRCUIT (JBL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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