Why Jabil Circuit Shares Short-Circuited

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  ) short-circuited today, down by as much as 10%, after the company reported earnings yesterday.

So what: Revenue was $4.3 billion, roughly flat with the year-ago quarter, and adjusted earnings per share was $0.54. Those results were slightly worse than the market was expecting on revenue, but the bottom line fell short by about $0.04 per share. Jabil Circuit also guided next quarter below consensus estimates.

Now what: The coming quarter should see sales in the range of $4.3 billion to $4.5 billion, with earnings per share between $0.51 and $0.62. Analysts were calling for $4.52 billion in revenue and a $0.67 per share profit. Jabil Circuit is running into shrinking margins related to providing the aluminum casing in Apple's (Nasdaq: AAPL  ) iPhone 5, since Apple is one of its biggest customers. The new smartphone is ramping up production to meet demand, causing negative pressure on Jabil Circuit's results.

Interested in more info on Jabil Circuit? Add it to your watchlist by clicking here.

Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2032946, ~/Articles/ArticleHandler.aspx, 10/25/2014 2:20:59 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement