Shares of Jabil Circuit soared after the opening bell Wednesday after the electronics manufacturer said its fiscal third-quarter profit rose sharply and predicted bullish results for the rest of the year.
Shares jumped $2.54, or 18 percent, to $16.87.
Late Tuesday, Jabil said its third-quarter profit jumped to an adjusted 26 cents per share, beating Wall Street estimates by 6 cents, according to a poll of analysts by Thomson Financial. The St. Petersburg, Fla., company also offered a fourth-quarter outlook mostly ahead of Wall Street expectations. Its full-year guidance topped estimates.
Robert W. Baird analyst Reik Read reiterated his "Outperform" rating on Jabil in a note to investors, saying he is encouraged that the company is showing signs of improved profitability and capturing new revenue opportunities.
Jabil said its revenue rose 3 percent to $3.09 billion, from $3 billion in the prior-year quarter.
Read raised his own earnings estimates and upped his price target to $18 from $15, implying he expects shares to gain 26 percent over Tuesday's close of $14.33.
Similarly, RBC Capital Markets analyst Amit Daryanani reiterated his "Outperform" rating on Jabil, calling the results "impressive ... with potentially more to come."
He raised his price target to $19 from $14, predicting that the better-than-expected guidance will continue to drive the stock higher.
A Merrill Lynch analyst upgraded Jabil to "Buy" from "Neutral."
Shares of Jabil have gained 59 percent from a 52-week low of $9.03 in March. The stock is off 6 percent since the start of the year.
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