Electronics manufacturer Jabil Circuit
Jabil's second quarter outpaced Wall Street expectations with non-GAAP earnings of $0.54 per share on $3.9 billion in sales. Moreover, next-quarter guidance pointed to sales of more than $4.1 billion and $0.57 of earnings per share also put the Street to shame.
The earthquake and tsunami in Japan caused no direct harm to Jabil's operations in the country, though the component supply chain definitely took a hit. The upbeat guidance doesn't take shortages into account, because the extent of the problem is not yet known.
That's probably a fair treatment of the supply chain issue. As Jabil CEO Tim Main said, there's no reason to believe that Jabil will suffer any more or any less than Flextronics International
I think Jabil should be fine in terms of end-user demand as well. This is a very diversified company with large customers in nearly any industry you'd care to name, from aerospace and defense to medical equipment and telecommunications. Last year, Jabil's largest customers included Cisco Systems
So Jabil deserves today's big pop, and a solid four-star CAPS rating (out of five) tells me that investors expect more good news from this company in coming quarters. My own thumbs-up rating on the stock is certainly helping to cement my all-star ranking in the CAPS system. Click here to add your own "outperform" rating on Jabil, or click here to add the stock to your watchlist for further research.
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