Jabil Circuit Puts Up Mixed Results (JBL, CLS, SANM, FLEX)

Jabil Circuit Inc. (NYSE: JBL) reported fiscal fourth quarter 2012 adjusted earnings per share (EPS) of $0.54 on revenue of $4.3 billion. In the same period a year ago, the electronics manufacturing company reported adjusted EPS of $0.62 on revenue of $4.3 billion. Fourth-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.58 and $4.22 billion in revenue.

For the 2012 fiscal year, the company reported adjusted EPS of $2.40 on revenue of $17.2 billion. Results for fiscal year 2011 included EPS of $2.34 on revenue of $16.5 billion. The consensus estimates called for EPS of $2.45 on revenue of $17.04 billion.

The company’s president/CEO said:

In this environment, posting another record fiscal year in revenue, income and earnings was quite an achievement. … Excluding amortization of intangibles, stock-based compensation and distressed customer charges, operating income was $175 million. GAAP diluted earnings per share was $0.39 cents and core diluted earnings per share was $0.54 cents.

The company also offered first quarter 2013 guidance. The company expects revenue of $4.3 to $4.5 billion and adjusted EPS of $0.51 to $0.62. The consensus estimate had called for EPS of $0.67 on revenue of $4.52 billion.

Jabil’s competitors, Celestica Inc. (NYSE: CLS), Sanmina-SCI Corp. (NASDAQ: SANM), and Flextronics International Ltd. (NASDAQ: FLEX), are also struggling with slowdowns in circuit board manufacturing due to slowing demand for desktop PCs, and in Celestica’s case, disappearing demand for Blackberry smartphones.

Jabil’s board has authorized a share repurchase plan of up to $100 million for the next twelve months to help “minimize the dilution from the company’s employee equity issuance.”

Jabil’s shares are down about 3.2% in after-hours trading, at $20.30, after closing today at $20.97. The 52-week range is $15.65 to $27.40. Thomson Reuters had a consensus analyst price target of $26.15 before today’s report.

Paul Ausick