September 28, 2011
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Jabil Circuit (NYSE: JBL ) surged more than 11% on early trading today and remain up close to 9% on triple the average daily volume as the electronics parts maker reported better-than-expected fourth-quarter results.
So what: Management said the company expanded market share and added customers as revenue rose 10% to $4.28 billion. Core profits rose 19% to $0.62 a share. Analysts were expecting $4.19 billion and $0.56 a share, according to data compiled by Yahoo! Finance.
Now what: Jabil also reported a strong first-quarter outlook, projecting $0.62 to $0.70 a share of core earnings on $4.3 billion to $4.5 billion in revenue. Both estimates easily blew away Wall Street expectations, possibly goading some investors to sell off shares of competitor Sanmina-SCI (Nasdaq: SANM ) , which was down more than 2% as of this writing. Jabil's other direct competitor, Flextronics International (Nasdaq: FLEX ) , was rallying as the closing bell approached. Where do you stand on Jabil Circuit? Would you buy the stock at these levels? Please weigh in using the comments box below.
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