Jabil Circuit Inc.(JBL - Free Report) reported better-than-expected second-quarter fiscal 2017 results. Adjusted earnings (including share-based compensation but excluding all one-items) of 40 cents per share surpassed the Zacks Consensus Estimate of 36 cents.
Quarter Details
Revenues of $4.45 billion also beat the Zacks Consensus Estimate of $4.37 billion and were higher than the prior-year quarter’s figure of $4.40 billion.
Electronics manufacturing services revenues (representing 60% of revenues) came in at about $2.7 billion, up 1% year over year. Diversified Manufacturing Services revenues (40% of revenues) increased 1% year over year to $1.8 billion.
Operating Details
Gross margin contracted nearly 100 bps on a year-over-year basis to 8.1%.
The company’s operating income decreased 43.3% year on year to $83.2 million.
Balance Sheet & Cash Flow
Exiting the quarter, cash and cash equivalents were $755.1 million, compared with $912.1 million as of Aug 31, 2016.
Cash flow from operations for the first six months of the year was $346.2 million compared with $72.7 million in the year-ago period.
Restructuring Program
The company continued with its plans to realign its global capacity and administrative support infrastructure so as to optimize organizational effectiveness amid a sluggish macroeconomic scenario. The company is progressing with its efforts to improve organizational efficiency and effectiveness as planned. The company incurred $45 million of restructuring expenses.
Guidance
The company initiated guidance for the third quarter of fiscal 2017.
For the third quarter, Jabil expects total company net revenue to increase 2% (at mid point) year over year and be in the range of $4.25 billion to $4.55 billion. Core operating income is estimated in a range of $90 million to $130 million.
On a year-over-year basis, revenues from Diversified Manufacturing are expected to increase 9% to $1.6 billion.
Electronics Manufacturing Services revenues are expected to decrease 1% on a year-over-year basis to $2.8 billion.
On a GAAP basis, the company expects to report loss in a range of 3 cents to 34 cents per share. On the other hand, the company is expected to post earnings in the range of 19 cents to 39 cents per share on a non GAAP basis.
Currently, Jabil Circuit has a Zacks Rank #3 (Hold). Notably, shares of Jabil Circuit have underperformed the Zacks Electronics - Manufacturing Servicesindustry over the last one year. While the industry gained 41.8%, the stock appreciated 22.9%.
Price Return Performance Chart
Better-ranked stocks in the broader tech space include Tech data Corp , ADTRAN Inc. (ADTN - Free Report) and Applied Materials, Inc. (AMAT - Free Report) . Tech Data sports a Zacks Rank #1 (Strong Buy) while ADTRAN and Applied Materials carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tech Data has delivered an average positive earnings surprise of 8.73% in the trailing four quarters while ADTRAN and Applied Materials have delivered positive earnings surprises of 35.82% and 3.92%, respectively over the same time frame.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Jabil Circuit Inc.(JBL - Free Report) reported better-than-expected second-quarter fiscal 2017 results. Adjusted earnings (including share-based compensation but excluding all one-items) of 40 cents per share surpassed the Zacks Consensus Estimate of 36 cents.
Quarter Details
Revenues of $4.45 billion also beat the Zacks Consensus Estimate of $4.37 billion and were higher than the prior-year quarter’s figure of $4.40 billion.
Electronics manufacturing services revenues (representing 60% of revenues) came in at about $2.7 billion, up 1% year over year. Diversified Manufacturing Services revenues (40% of revenues) increased 1% year over year to $1.8 billion.
Operating Details
Gross margin contracted nearly 100 bps on a year-over-year basis to 8.1%.
The company’s operating income decreased 43.3% year on year to $83.2 million.
Balance Sheet & Cash Flow
Exiting the quarter, cash and cash equivalents were $755.1 million, compared with $912.1 million as of Aug 31, 2016.
Cash flow from operations for the first six months of the year was $346.2 million compared with $72.7 million in the year-ago period.
Restructuring Program
The company continued with its plans to realign its global capacity and administrative support infrastructure so as to optimize organizational effectiveness amid a sluggish macroeconomic scenario. The company is progressing with its efforts to improve organizational efficiency and effectiveness as planned. The company incurred $45 million of restructuring expenses.
Guidance
The company initiated guidance for the third quarter of fiscal 2017.
For the third quarter, Jabil expects total company net revenue to increase 2% (at mid point) year over year and be in the range of $4.25 billion to $4.55 billion. Core operating income is estimated in a range of $90 million to $130 million.
On a year-over-year basis, revenues from Diversified Manufacturing are expected to increase 9% to $1.6 billion.
Electronics Manufacturing Services revenues are expected to decrease 1% on a year-over-year basis to $2.8 billion.
On a GAAP basis, the company expects to report loss in a range of 3 cents to 34 cents per share. On the other hand, the company is expected to post earnings in the range of 19 cents to 39 cents per share on a non GAAP basis.
Currently, Jabil Circuit has a Zacks Rank #3 (Hold). Notably, shares of Jabil Circuit have underperformed the Zacks Electronics - Manufacturing Servicesindustry over the last one year. While the industry gained 41.8%, the stock appreciated 22.9%.
Price Return Performance Chart
Better-ranked stocks in the broader tech space include Tech data Corp , ADTRAN Inc. (ADTN - Free Report) and Applied Materials, Inc. (AMAT - Free Report) . Tech Data sports a Zacks Rank #1 (Strong Buy) while ADTRAN and Applied Materials carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tech Data has delivered an average positive earnings surprise of 8.73% in the trailing four quarters while ADTRAN and Applied Materials have delivered positive earnings surprises of 35.82% and 3.92%, respectively over the same time frame.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on ADTN - FREE
Get the latest research report on AMAT - FREE
Get the latest research report on JBL - FREE