The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Jabil Circuit beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share increased significantly.
Gross margins improved, operating margins dropped, and net margins grew.
Jabil Circuit tallied revenue of $4.24 billion. The 10 analysts polled by S&P Capital IQ predicted net sales of $4.09 billion on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $3.93 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.58. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.57 per share on the same basis. GAAP EPS of $0.46 for Q2 were 84% higher than the prior-year quarter's $0.25 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.6%, 10 basis points better than the prior-year quarter. Operating margin was 3.5%, 10 basis points worse than the prior-year quarter. Net margin was 2.3%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.32 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $17.36 billion. The average EPS estimate is $2.58.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 370 members rating the stock outperform and 41 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Jabil Circuit a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Jabil Circuit is outperform, with an average price target of $24.85.
- Add Jabil Circuit to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Jabil Circuit (JBL) Q1 2018 Earnings Conference Call Transcript
JBL earnings call for the period ending November 30.
Jabil Inc. Stock: Next Stop, $26?
The manufacturing and engineering services company has handily beat the market this year. But some on Wall Street are calling for caution.
Why Shares of Jabil Circuit Popped Today
Despite a revenue and earnings decline, the company performed better than analysts were expecting.