Jabil Circuit Q1 Profit Rises; Issues Q2 Outlook - Quick Facts

(RTTNews) - Jabil Circuit Inc. (JBL) Tuesday reported first-quarter net income attributable to the company of $117.9 million, or $0.57 per share, compared to $105.8 million, or $0.51 per share in the comparable quarter last year.

Core earnings for the quarter decreased to $105.4 million, or $0.51 per share from $127.8 million, or $0.61 per share last year. On average, 12 analysts polled by Thomson Reuters expected earnings of $0.54 per share for the quarter. Analysts' estimates typically exclude special items.

For the latest first quarter, revenues declined to $4.61 billion from $4.64 billion in the year-ago period, while ten analysts estimated revenues of $4.46 billion for the quarter.

Looking forward to the second quarter, the company expects loss of $0.20 to $0.06 per share, core earnings of $0.05 to $0.15 per share and net revenues of $3.5 billion to $3.7 billion. Analysts currently estimate earnings of $0.52 per share and revenues of $4.28 billion for the quarter.

The company also announced that its Board of Directors has authorized the repurchase of up to $200 million of the company's common stock over the next 12 months.

Separately, Jabil announced that it has entered into an agreement with iQor Holdings, Inc. for the sale of its aftermarket services business for $725 million.

Of the $725 million purchase price, $675 million is cash and $50 million is senior nonconvertible preferred stock of iQor that accretes dividends at an annual rate of 8 percent and is redeemable in nine years or upon a change in control, the company noted.

The company said the transaction is subject to certain closing conditions, including regulatory approvals and receipt of third party consents, and is anticipated to close in Jabil's third fiscal quarter of 2014.