Jabil Circuit Earnings: Stock Pops on These Results

S&P 500 (NYSE:SPY) component Jabil Circuit Inc. (NYSE:JBL) reported its results for the first quarter. Jabil Circuit is an independent provider of electronic manufacturing services and solutions. It is engaged in the design, production of electronics, and it offers product management and aftermarket services to companies in a wide range of industries, such as the aerospace, defense, medical and telecommunications sectors.

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Jabil Circuit Inc. Earnings Cheat Sheet

Results: Net income for Jabil Circuit Inc. fell to $105.8 million (51 cents per share) vs. $112.9 million (54 cents per share) a year earlier. This is a decline of 6.2% from the year-earlier quarter.

Revenue: Rose 7.2% to $4.64 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jabil Circuit Inc. reported adjusted net income of 61 cents per share. By that measure, the company beat the mean estimate of 47 cents per share. It beat the average revenue estimate of $4.29 billion.

Quoting Management: “We are pleased to have generated cash flow from operations of $152 million during the quarter. As a result of this outstanding performance and the ongoing strength of our balance sheet, we were able to return $148 million in capital to shareholders during the first quarter of fiscal year 2013 through dividends and share repurchases,” said Chief Financial Officer Forbes Alexander. “We see this positive performance continuing and continue to estimate operating cash flow of $1 billion in fiscal 2013,” Alexander noted.

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 1.4% to $4.34 billion in the fourth quarter of the last fiscal year. The figure rose 0.5% in the third quarter of the last fiscal year from the year earlier and climbed 7.8% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now seen its net income fall for three quarters in a row. In the fourth quarter of the last fiscal year, net income fell 27.6% from the year earlier, while the figure fell 3.2% in the third quarter of the last fiscal year.

The company beat estimates last quarter after falling short in the previous two quarters. In the fourth quarter of the last fiscal year, it missed the mark by 6 cents, and in the third quarter of the last fiscal year, it came in under estimates by 2 cents.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 56 cents per share to 50 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $2.17 per share, down from $2.45 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)