Jabil Circuit Revenue Jumps 14%

23 Dec 2015 | Author: | No comments yet »

Here’s another sign that the iPhone could have a weak quarter.

Shares of contract electronics manufacturer Jabil Circuit (JBL) are up 69 cents, or 3%, at $24.60, in late trading, after the company this afternoon reported fiscal Q1 revenue in line with expectations and beat by 5 cents for net income.Jabil Circuit, Inc. (NYSE:JBL) saw unusually-strong trading volume on Wednesday following a stronger than expected earnings report, Marketbeat reports. The company reported $0.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.80 by $0.05, Analyst Ratings Net reports. According to the note, Jabil’s revenue forecast implies a 23% sequential decline in its Diversified Manufacturing Services segment, the unit that’s largely responsible for making the iPhone’s casings.

Approximately 6,073,951 shares traded hands during trading, an increase of 104% from the previous session’s volume of 2,978,741 shares.The stock last traded at $23.91 and had previously closed at $23.97. Chief executive officer Mark Mondello said he was “extremely pleased” with the results, which were “driven by improved product diversification and exceptional productivity across both of our business segments.” The two main segments of the company’s operations, “DMS” and “EMS” both performed well, he said. “This is a great start to our fiscal year and Jabil remains well-positioned for a solid 2016.” For the current quarter, the company sees revenue in a range of $4.4 billion to $4.7 billion, and EPS, excluding some costs, of 54 cents to 70 cents a share. The company issued revenue guidance of Approx $20 billion, compared to the consensus revenue estimate of $19.87 billion.Jabil Circuit also updated its Q2 guidance to $0.54-0.70 EPS. The company also reiterated an outlook for $20 billion in revenue this year and adjusted earnings of $2.65, versus consensus for $19.88 billion and $2.60 per share.

Added Mondello, “I am also pleased that our outlook for the balance of the fiscal year remains on track, supported by our customized supply chain management and engineering solutions, both of which are increasingly important in this digital age.” But it did note that the company said the decline was “all about seasonality that is a little bit steeper than normal.” This is the fourth time this week that we’re seeing a Wall Street analyst hint at a decline in iPhone sales for the upcoming quarters.

Mondello, CEO of Jabil Circuit said, “This record quarter illustrates the power of both our DMS and EMS businesses as highlighted by a 55 percent core EPS growth year-on-year. On Monday, Morgan Stanley predicted a 6% drop in sales for fiscal year 2016, while two more firms gave weaker forecasts based on lowered guidance from one of Apple’s main power management chip suppliers. He cited high conversion rates from Android users to the iPhone and strong potential in emerging markets, as well as China, as reasons for why he’s not concerned about it. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and four have assigned a buy rating to the company’s stock. The Company provides electronic design, production and product management services to companies in the aerospace, automotive, computing, defense, digital home, energy, healthcare, industrial, instrumentation, lifestyles, mobility, mold, networking, packaging, peripherals, storage, telecommunications and wearable technology industries.

The EMS segment is focused around leveraging information technology (IT), supply chain design and engineering, technologies centered on core electronics. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. You can view the original version of this story at http://www.dakotafinancialnews.com/jabil-circuit-inc-jbl-sees-large-volume-increase-following-better-than-expected-earnings/739364/ Receive News & Ratings for Jabil Circuit Inc.

Here you can write a commentary on the recording "Jabil Circuit Revenue Jumps 14%".

* Required fields
All the reviews are moderated.
Our partners
Follow us
Contact us
Our contacts

About this site