Jabil Circuit First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Jabil Circuit (NYSE:JBL) will unveil its latest earnings on Wednesday, December 19, 2012. 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.

Jabil Circuit Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 47 cents per share, a decline of 16.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 58 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 47 cents during the last month. Analysts are projecting profit to rise by 7.4% compared to last year’s $2.17.

Past Earnings Performance: Last quarter, the company fell short of estimates by 6 cents, coming in at profit of 44 cents a share versus the estimate of net income of 50 cents a share. It was the fourth straight quarter of missing estimates.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 27.6% to $82.8 million (40 cents a share) from $114.3 million (52 cents a share) the year earlier, missing analyst expectations. Revenue rose 1.4% to $4.34 billion from $4.28 billion.

Stock Price Performance: Between September 19, 2012 and December 13, 2012, the stock price fell $3.61 (-16.3%), from $22.14 to $18.53. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012, when shares rose for nine straight days, increasing 9.4% (+$1.84) over that span. It saw one of its worst periods between September 14, 2012 and September 26, 2012 when shares fell for nine straight days, dropping 16.7% (-$3.80) over that span.

Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 6% in the first quarter of the last fiscal year, 7.8% in the second quarter of the last fiscal year and 0.5% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 3.2% in the third quarter of the last fiscal year and then again in the fourth quarter of the last fiscal year.

Wall St. Revenue Expectations: On average, analysts predict $4.41 billion in revenue this quarter, a rise of 1.8% from the year-ago quarter. Analysts are forecasting total revenue of $18.15 billion for the year, a rise of 5.8% from last year’s revenue of $17.15 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.46 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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

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