Jabil Circuit Increases Sales but Misses Estimates Anyway

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Jabil Circuit (NYS: JBL) reported earnings on Dec. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Jabil Circuit missed slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew, and earnings per share improved.

Gross margins increased, operating margins grew, and net margins were steady.

Revenue details
Jabil Circuit logged revenue of $4.3 billion. The 11 analysts polled by S&P Capital IQ expected a top line of $4.4 billion. Sales were 6.0% higher than the prior-year quarter's $4.1 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.65. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.65 per share on the same basis. GAAP EPS of $0.54 for Q1 were 10% higher than the prior-year quarter's $0.49 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 7.9%, 30 basis points better than the prior-year quarter. Operating margin was 3.9%, 10 basis points better than the prior-year quarter. Net margin was 2.6%, about the same as the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $4.1 billion. On the bottom line, the average EPS estimate is $0.57. (There are 11 revenue estimates and 12 EPS estimates.)

For the full year ending 2012, the average estimate for revenue is $17.3 billion. The average EPS estimate is $2.55. (There are 11 revenue estimates and 12 EPS estimates.)

Investor Sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 385 members out of 424 rating the stock outperform, and 39 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Jabil Circuit a green thumbs-up, and six 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 $22.91.

At the time this article was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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