Jabil Circuit Inc. Earnings: Margins Suffer as Costs Rise, Profit Falls

S&P 500 (NYSE:SPY) component Jabil Circuit Inc. (NYSE:JBL) reported its results for the fourth quarter. Jabil Circuit is an independent provider of electronic manufacturing services and solutions. It is engaged in the design, production of electronics, and it offers product management and aftermarket services to companies in a wide range of industries, such as the aerospace, defense, medical and telecommunications sectors.

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Jabil Circuit Inc. Earnings Cheat Sheet

Results: Net income for Jabil Circuit Inc. fell to $82.8 million (39 cents per share) vs. $114.3 million (52 cents per share) a year earlier. This is a decline of 27.6% from the year-earlier quarter.

Revenue: Rose 1.4% to $4.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jabil Circuit Inc. fell short of the mean analyst estimate of 51 cents per share. Analysts were expecting revenue of $4.29 billion.

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 2 cents in the third quarter, by one cent in the second quarter, and by 2 cents in the first quarter.

Revenue has risen for the last four quarters. Revenue increased 0.5% to $4.25 billion in the third quarter. The figure rose 7.8% in the second quarter from the year earlier and climbed 6% in the first quarter from the year-ago quarter.

The company’s net income has fallen for two quarters in a row. In the third quarter, net income fell 3.2% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 68 cents a share to 59 cents over the last sixty days. Over the past sixty days, the average estimate for the fiscal year has reached $2.11 per share, a decline from $2.25.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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