Jabil Circuit Earnings: Here’s Why Investors are Not Happy Now

Jabil Circuit Inc. (NYSE:JBL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5%.

Jabil Circuit Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.7% to $0.56 in the quarter versus EPS of $0.54 in the year-earlier quarter.

Revenue: Rose 10.97% to $4.81 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jabil Circuit Inc. reported adjusted EPS income of $0.56 per share. By that measure, the company beat the mean analyst estimate of $0.54. It beat the average revenue estimate of $4.51 billion.

Quoting Management: “Delivering record revenues, generating more than a billion dollars of cash flow from operations, and achieving a core return on invested capital of 21 percent are clear highlights of our fiscal year,” said Jabil’s Chief Executive Officer Mark Mondello. “In addition, we are pleased to return nearly $200 million in capital to shareholders through dividends and share repurchases, while continuing to thoughtfully invest capital back into the business, both organically and acquisitively, with an eye on long-term earnings growth,” said Mondello.

Key Stats (on next page)…

Revenue increased 7.75% from $4.47 billion in the previous quarter. EPS increased 0% from $0.56 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.65 to a profit $0.63. For the current year, the average estimate has moved down from a profit of $2.25 to a profit of $2.24 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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