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Jabil Circuit Inc. (JBL - Analyst Report) is set to report third quarter 2013 results on Jun 19. Jabil reported second quarter earnings of 45 cents per share, which missed the Zacks Consensus Estimate by a penny. Let’s see how things are shaping up for this announcement.

Growth Factors this Past Quarter

Revenues for the quarter increased 4.2% from the year-ago quarter to $4.42 billion and were within management’s guided range of $4.3 billion to 4.5 billion. The year-over-year increase in revenues was primarily driven by strong performance from the Diversified Manufacturing and Enterprise & Infrastructure segments, which fully offset a weak performance from the High Velocity segment.

Jabil expects net revenue in the range of $4.3 billion to $4.5 billion for the third quarter of 2013. The company projects operating income in the $165.0 million to $185.0 million range for the third quarter of 2013. Operating margin is expected in the range of 3.8% to 4.1%. Jabil expects non-GAAP earnings to be between 50 cents and 58 cents per share for the third quarter.

Earnings Whispers?

The Zacks Consensus Estimate for the third quarter stands at 46 cents while that for fiscal 2013 stands at $1.96. There were no estimate revisions for both the third quarter and fiscal 2013 over the past 30 days. As a result, the Zacks Consensus Estimate for both periods has remained unchanged.

The chances of a big surprise are unlikely given the lack of catalysts during the quarter. The stock carries a Zacks Rank #3 (Hold).

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 momentum.

Other Stocks to Consider

Our model states that a stock needs to have both a positive Zacks Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, #2 or #3 to beat earnings estimates. You could, therefore, consider stocks like:

Akamai Technologies (AKAM - Analyst Report), Earnings ESP of +8.11% and Zacks Rank #1 (Strong Buy)

Netflix (NFLX - Analyst Report), Earnings ESP of +10.26% and Zacks Rank #2 (Buy)

Yahoo! (YHOO - Analyst Report), Earnings ESP of +3.85% and Zacks Rank #2 (Buy)

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