Image source: Jabil Circuit.

What happened

Shares of electronic manufacturing services and solutions provider Jabil Circuit (JBL -1.05%) jumped on Friday following the company's fiscal first-quarter report. In addition to beating analyst estimates for both revenue and earnings, Jabil provided guidance that was favorable to analyst expectations. Jabil stock was up about 16% at 10:45 a.m. EST.

So what

Jabil reported first-quarter revenue of $5.1 billion, down about 2% year over year, but $190 million higher than the average analyst estimate. Revenue from diversified manufacturing, which accounts for 47% of total revenue, slumped 3% year over year, while electronics manufacturing, which accounts for the rest of Jabil's revenue, produced a sales decline of 1%.

Non-GAAP earnings came in at $209.5 million, or $0.69 per share, down from $0.85 per share during the prior-year period, but $0.05 better than analysts were expecting. GAAP EPS was also down significantly, falling to $0.47 from $0.68 during the first quarter of last year.

Jabil CEO Mark Mondello added some color to the company's results:

I'm really pleased with our strong first quarter results. In particular, we saw strength in our healthcare, packaging and consumer lifestyles businesses within our DMS segment, combined with yet another solid quarter of execution from our EMS segment, allowing us to deliver excellent results.

Now what

Jabil expects to produce revenue in the range of $4.2 billion to $4.5 billion during the second quarter, compared to analyst expectations of $4.36 billion. Non-GAAP EPS is expected to be between $0.35 and $0.57, with the average analyst estimate of $0.46 splitting that range right down the middle.

While Jabil expects revenue to decline during the second quarter, Mondello is focused on the long term:

Looking ahead, we'll remain focused on our multi-year financial objectives and longer-term enterprise goals, while following through on our commitment to return capital to shareholders, as previously communicated under our two-year capital allocation framework.