Technology

Jabil Circuit Sinks Despite Beating Earnings

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When Jabil Circuit Inc. (NYSE: JBL) reported its fiscal third-quarter financial results late on Wednesday, the company said that it had $0.31 in earnings per share (EPS) and $4.49 billion in revenue. That compared with consensus estimates from Thomson Reuters of $0.29 in EPS and revenue of $4.41 billion. The same period of last year reportedly had EPS of $0.17 and $4.31 billion in revenue.

In terms of guidance for the fiscal fourth quarter, the company offered EPS in the range of $0.50 to $0.74 and revenues between $4.7 billion and $5.1 billion. Consensus estimates call for $0.62 in EPS and $4.79 billion in revenue.

This current quarter looks to be the best in company history, according to CEO Mark Mondello. At the same time, the forecast suggests the growth in both DMS and EMS in fiscal 2018 will result in core EPS in the neighborhood of $2.60 (versus consensus of $2.43).

On the books, Jabil’s cash and cash equivalents totaled $743.9 million at the end of the quarter, down from $912.1 million at the end of the previous fiscal year.

Mondello added:

I’m pleased with our third quarter results as both business segments performed quite well. In Diversified Manufacturing Services, the team delivered exceptional execution and cost controls against product road maps exhibiting massive scale and complexity, while we continued to see strong double-digit growth in healthcare and packaging. At the same time, our Electronics Manufacturing Services team continues to do an excellent job building broad revenue diversification, while developing end-market domain expertise, resulting in solid margin expansion.

Shares of Jabil were trading down about 2% at $29.91 on Thursday, with a consensus analyst price target of $28.56 and a 52-week range of $17.27 to $31.70.

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