Jabil Circuit Shares Higher: Announces $100 Million Stock Buyback

Shares of Jabil Circuit, Inc. (NYSE:JBL) are trading higher today after the company issued a press release announcing that its Board of Directors has authorized the company to buy back $100 million worth of shares over the next year.  The press release notes that “The shares will be repurchased from time-to-time in open market transactions at the Company’s discretion, subject to market conditions and other factors.”

Buying back shares has the salutary effect of reducing the number of shares outstanding, and so improving numbers, such as return on equity, that depend on the number of shares outstanding.  However, critics point out that companies often buy back shares at high prices and that a company’s decision to buy back shares indicates an inability on management’s part to find any investment which would grow the top line of the income statement.  Further, critics argue that cash spent on share repurchases would often be better spent by increasing dividends or paying down debt.

Past Earnings: Jabil Circuit Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth>>

Following is some information on the stock price performance of Jabil Circuit and that of some of its competitors.

  • Jabil Circuit, Inc. (NYSE:JBL): The shares recently traded at $19.95, up $0.65, or 3.37%, on the day.  The shares have traded in a 52-week range of $13.67 to $23.09 and its market capitalization is $4.26 billion.  About the company: Jabil Circuit, Inc. is an electronic manufacturing services provider for international electronics companies in the communications, personal computer, peripheral, consumer and automotive markets.  The Company offers circuit design, board design from schematic, prototype assembly, volume board assembly, system assembly, repair, and warranty services.
  • Sanmina-SCI Corporation (NASDAQ:SANM): The shares recently traded at $8.18, up $0.27 ,or 3.41%, on the day.  The shares have traded in a 52-week range of $6.01 to $17.32 and its market capitalization is $659.78 million. About the company: Sanmina-SCI Corporation provides electronic contract manufacturing services to customers located around the world.  The Company offers its customers expertise in  new product introduction, manufacturing, and design and fabrication of complex interconnect products.  Sanmina-SCI specializes in circuit fabrication, system assembly, integration, and high-end enclosures and cabling.
  • Benchmark Electronics (NYSE:BHE): The shares recently traded at $14.20, up $0.36, or 2.6%, on the day.  The shares have traded in a 52-week range of $12.01 to $20.24 and its market capitalization is $846.23 million.  About the company: Benchmark Electronics, Inc. provides contract electronics manufacturing and design services.  The Company serves original equipment manufacturers of medical devices, industrial control equipment, testing and instrumentation products, and telecommunications equipment.  Benchmark also offers product design, printed circuit board layout, prototyping and test development services.
  • Plexus Corp. (NASDAQ:PLXS): The shares recently traded at $28.13, up $1.13, or 4.19%, on the day.  The shares have traded in a 52-week range of $21.06 to $38.71 and its market capitalization is $996.71 million.  About the company: Plexus Corp. is a participant in the Electronics Manufacturing Services industry, providing product design, supply chain and materials management, manufacturing, test, fulfillment and aftermarket solutions to banded product companies in the Wireline/Networking, Wireless Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace market sectors.
  • Flextronics, International, Inc. (NASDAQ:FLEX): The shares recently traded at $6.78, up $0.66, or 10.72%, on the day.  The shares have traded in a 52-week range of $5.05 to $8.50 and its market capitalization is $4.96 billion. About the company: Flextronics International, Ltd. provides electronics manufacturing services.  The Company’s customers include original equipment manufacturers in the telecommunications, networking, computer, consumer electronics, and medical device industries.

(Note: Selected financial data are sourced from Google Finance.  All data are assumed to be accurate.)

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