Jabil Circuit Profit Tops Street, Cuts FY Outlook

(RTTNews) - Jabil Circuit Inc. (JBL), Wednesday reported an decrease in profit for the third quarter, however, the contract electronics manufacturer earnings and revenues trumped Wall Street estimates. The company also lowered its full year forecast.

St. Petersburg, Florida-based Jabil's third-quarter profit dropped to $5.2 million or $0.03 per share from $72.2 million or $0.37 per share last year.

Excluding one-time items, core earnings for the quarter declined to $32.0 million or $0.17 per share from $96.5 million or $0.49 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter dropped to $4.31 billion from $4.36 billion a year ago. Analysts had a consensus revenue estimate of $4.18 billion for the quarter.

"Our Electronics Manufacturing Services business performed ahead of plan supported by near-perfect execution during the quarter," said CEO Mark Mondello.

"However as expected, our third quarter results also reflected a soft environment within our mobility business. These challenges will continue to negatively impact our Diversified Manufacturing Services business for the balance of our fiscal year," he added.

Looking forward to the fourth-quarter, Jabil expects adjusted earnings of $0.15 to $0.35 per share and revenues of $4.15 billion to $4.35 billion. Analysts currently estimate earnings of $0.53 per share on revenues of $4.66 billion.

For the full year 2016, Jabil now expects adjusted earnings of about $1.85 per share and revenues of $18.2 billion. Analysts currently estimate earnings of $2.10 per share on revenues of $18.45 billion.

Previously, Jabil expected adjusted earnings of about $2.12 per share and revenues of $18.5 billion.

Further, Jabil authorized a $400 million share repurchase program, as part of the company's plans to increase capital returns to shareholders over the next two fiscal years.

JBL closed Wednesday's trading at $18.43, down $0.06 or 0.32% on the NYSE. The stock, however, increased $0.02 or 0.11% in the after-hours trade.