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Jabil Circuit (JBL) Q3 Earnings Miss Estimates, Revenues Beat
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Jabil Circuit Inc. (JBL - Free Report) reported mixed third-quarter fiscal 2017 results wherein the bottom line missed the Zacks Consensus Estimate by a penny while the top line surpassed the same. Adjusted earnings (excluding all other one-time items but including stock-based compensation) of 21 cents per share lagged the Zacks Consensus Estimate of 22 cents. However, on a year-on-year basis earnings jumped over two-folds.
However, revenues of $4.49 billion outpaced the Zacks Consensus Estimate of $4.41 billion and were higher than the prior-year quarter’s figure of $4.31 billion.
The company delivered approximately $114 million in core operating income resulting in core earnings per share of 31 cents. Core operating margin was 2.5%, representing a 50 basis points (bps) improvement year over year.
Following an improved year-over-year quarterly results, Jabil Circuit’s shares gained 3.3% in the yesterday’s afterhours trading session. Notably, shares of Jabil Circuit have outperformed the Zacks Electronics Manufacturing Services industry in the last one year. While the industry gained 38.6%, the stock appreciated 63.1%.
Electronics manufacturing services revenues (representing 63% of revenues) came in at about $2.82 billion, down 1% year over year. Diversified Manufacturing Services revenues (37% of revenues) increased 14% year over year to $1.67 billion.
Operating Details
Gross margin contracted nearly 10 bps on a year-over-year basis to 7.3%.
The company’s operating income decreased 27.2% year on year to $43.4 million.
Jabil Circuit, Inc. Price, Consensus and EPS Surprise
The company exited the quarter with cash and cash equivalents of $743.9 million, compared with $912.1 million as of Aug 31, 2016.
Cash flow from operations for the first nine months of the year was $533 million compared with $488.2 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 efforts to improve organizational efficiency and effectiveness as planned. The company incurred approximately $31 million of restructuring charges in the third quarter with approximately $110 million in charges year to date.
Guidance
The company provided guidance for fourth-quarter fiscal 2017.
For the fourth quarter, Jabil expects total company revenue to increase 11% (at mid point) year on year and in the range of $4.7–$5.1 billion. Core operating income is estimated in the range of $165–$215 million.
Diversified Manufacturing Services revenues are forecasted to grow 26% year over year.
Electronics Manufacturing Services revenues are anticipated to improve moderately at 2% on a year-on-year basis.
On a GAAP basis, the company expects to report diluted earnings in a range of 13–48 cents per share. Meanwhile, the company is expected to post earnings in the range of 50–74 cents per share on a non-GAAP basis.
Currently, Jabil Circuit carries a Zacks Rank #3 (Hold).
Applied Optoelectronics has delivered an average positive earnings surprise of 118.33% in the trailing four quarters while Amkor Technology and Broadcom have delivered positive earnings surprises of 43.06% and 6.73%, respectively over the same time frame.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold... By last year, it was already generating $8 billion in global revenues.
By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>
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Jabil Circuit (JBL) Q3 Earnings Miss Estimates, Revenues Beat
Jabil Circuit Inc. (JBL - Free Report) reported mixed third-quarter fiscal 2017 results wherein the bottom line missed the Zacks Consensus Estimate by a penny while the top line surpassed the same. Adjusted earnings (excluding all other one-time items but including stock-based compensation) of 21 cents per share lagged the Zacks Consensus Estimate of 22 cents. However, on a year-on-year basis earnings jumped over two-folds.
However, revenues of $4.49 billion outpaced the Zacks Consensus Estimate of $4.41 billion and were higher than the prior-year quarter’s figure of $4.31 billion.
The company delivered approximately $114 million in core operating income resulting in core earnings per share of 31 cents. Core operating margin was 2.5%, representing a 50 basis points (bps) improvement year over year.
Following an improved year-over-year quarterly results, Jabil Circuit’s shares gained 3.3% in the yesterday’s afterhours trading session. Notably, shares of Jabil Circuit have outperformed the Zacks Electronics Manufacturing Services industry in the last one year. While the industry gained 38.6%, the stock appreciated 63.1%.
Electronics manufacturing services revenues (representing 63% of revenues) came in at about $2.82 billion, down 1% year over year. Diversified Manufacturing Services revenues (37% of revenues) increased 14% year over year to $1.67 billion.
Operating Details
Gross margin contracted nearly 10 bps on a year-over-year basis to 7.3%.
The company’s operating income decreased 27.2% year on year to $43.4 million.
Jabil Circuit, Inc. Price, Consensus and EPS Surprise
Jabil Circuit, Inc. Price, Consensus and EPS Surprise | Jabil Circuit, Inc. Quote
Balance Sheet & Cash Flow
The company exited the quarter with cash and cash equivalents of $743.9 million, compared with $912.1 million as of Aug 31, 2016.
Cash flow from operations for the first nine months of the year was $533 million compared with $488.2 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 efforts to improve organizational efficiency and effectiveness as planned. The company incurred approximately $31 million of restructuring charges in the third quarter with approximately $110 million in charges year to date.
Guidance
The company provided guidance for fourth-quarter fiscal 2017.
For the fourth quarter, Jabil expects total company revenue to increase 11% (at mid point) year on year and in the range of $4.7–$5.1 billion. Core operating income is estimated in the range of $165–$215 million.
Diversified Manufacturing Services revenues are forecasted to grow 26% year over year.
Electronics Manufacturing Services revenues are anticipated to improve moderately at 2% on a year-on-year basis.
On a GAAP basis, the company expects to report diluted earnings in a range of 13–48 cents per share. Meanwhile, the company is expected to post earnings in the range of 50–74 cents per share on a non-GAAP basis.
Currently, Jabil Circuit carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the broader tech space include Applied Optoelectronics, Inc. (AAOI - Free Report) , Amkor Technology, Inc. (AMKR - Free Report) and Broadcom Ltd. (AVGO - Free Report) . Applied Optoelectronics sports a Zacks Rank #1 (Strong Buy) while Amkor Technology and Broadcom carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Optoelectronics has delivered an average positive earnings surprise of 118.33% in the trailing four quarters while Amkor Technology and Broadcom have delivered positive earnings surprises of 43.06% and 6.73%, respectively over the same time frame.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold... By last year, it was already generating $8 billion in global revenues.
By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>