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Will Jabil (JBL) Miss Q1 Earnings Estimates?

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Jabil Circuit Inc (JBL - Free Report) is set to report fiscal first quarter 2014 results on Dec 17, 2013. In the prior quarter, the company posted negative earnings surprise of 4.15%.

However, the company posted an average positive earnings surprise of 4.27% over the past four quarters. Let’s see how things are shaping up for the company in this quarter.

Growth Factors This Past Quarter

The company reported better-than-expected fiscal fourth-quarter 2013 results. Earnings of 48 cents per share beat the Zacks Consensus Estimate by a penny, while revenues were well ahead of the consensus mark.

Revenues increased 11.0% from the year-ago quarter to $4.81 billion, much better than management’s guided range of $4.45 billion to 4.65 billion. The year-over-year growth was primarily driven by strong performance across all the segments.

Moreover, the company’s main near-term challenge is to manage its exposure to BlackBerry Ltd. Which constitutes almost  12 % of its sales in fiscal 2013.Jabil is all set to disengage with Blackberry, which is evident from the decline in its handset production of BlackBerry.

Earnings  Whispers?

The Zacks Consensus Estimate for the first quarter stands at 47 cents per share while that for fiscal 2014 is $1.93 per share. There have been no estimate revisions over the last 30 days. The Zacks Consensus Estimate for 2013 and 2014 however declined over the last 30 days.

The lack of any movement in estimates signals the fact that there might not be too much of a positive development over the last one month. This is also indicated by that fact that the stock carries a Zacks Rank #4 (Sell).

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 and a Zacks Rank of #1, #2 or #3 to beat earnings estimates. You could, however, consider the following stocks that satisfy both criteria:

  • Factset Research (FDS - Free Report) has a Zacks Rank #2 (Buy) and Earnings ESP of +4.03%
  • Blackberry Ltd. has a Zacks Rank #3 (Hold) and Earnings ESP of +4.35%
  • Tibco Software has a Zacks Rank #3 (Buy) and Earnings ESP of +3.13%.

In-Depth Zacks Research for the Tickers Above

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Jabil, Inc. (JBL) - free report >>

FactSet Research Systems Inc. (FDS) - free report >>

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