Jabil Circuit Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Jabil Circuit (NYSE:JBL) will unveil its latest earnings on Tuesday, September 25, 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 analyst estimate is for profit of 50 cents per share, a decline of 7.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 51 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 5% versus last year to $2.10.

Past Earnings Performance: The company showed net income of 54 cents per share versus a mean estimate of profit of last quarter. This marks the fourth month of falling short of estimates.

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Stock Price Performance: Between June 25, 2012 and September 19, 2012, the stock price rose $3.34 (17.8%), from $18.80 to $22.14. 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 July 3, 2012 and July 11, 2012 when shares fell for six straight days, dropping 8.4% (-$1.72) over that span.

A Look Back: In the third quarter, profit fell 3.2% to $101.3 million (48 cents a share) from $104.7 million (47 cents a share) the year earlier, missing analyst expectations. Revenue rose 0.5% to $4.25 billion from $4.23 billion.

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

Key Stats:

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 94.7% in the fourth quarter of the last fiscal year, 5.8% in the first quarter and 76.3% in the second quarter before declining in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 10.9% in the fourth quarter of the last fiscal year, 6% in the first quarter and 7.8% in the second quarter before increasing again in the third quarter.

Wall St. Revenue Expectations: On average, analysts predict $4.22 billion in revenue this quarter, a decline of 1.4% from the year-ago quarter. Analysts are forecasting total revenue of $17.04 billion for the year, a rise of 3.1% from last year’s revenue of $16.52 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.32 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. The company regressed in this liquidity measure from 1.33 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5.2% to $4.05 billion while assets rose 4.3% to $5.34 billion.

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

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