Contract electronics company Jabil Circuit Inc. (JBL), said Tuesday its third quarter profit declined from last year on one-time charges and higher tax expenses, with "subdued growth in revenues." Jabil's quarterly earnings were in line with Street estimates, while revenue missed expectations.
Going forward, Jabil provided a weak guidance for the fourth quarter, with both earnings and sales indicated to miss analyst' estimates.
St. Petersburg, Florida-based Jabil reported third quarter net income of $101.3 million, down from $104.7 million last year. On a per share basis, earnings were higher at $0.48, compared to $0.47, denoting a reduced share count.
Results for the quarter included a $10 million distressed customer charge related to a certain solar customer.
Excluding items, core earnings for the quarter were $134.4 million or $0.64 per share, compared to $129 million or $0.58 per share in the prior year.
On average, 11 analysts polled by Thomson Reuters expected earnings of $0.64 per share for the quarter. Analysts' estimates typically exclude special items.
Jabil reported revenue of $4.25 billion, compared to $4.23 billion last year. Ten analysts expected revenue of $4.29 billion.
Segment-wise, Diversified Manufacturing Services grew 22 percent from last year and accounted for 44 percent of total business. High Velocity business chipped in with 25 percent of total revenue, and Enterprise & Infrastructure business contributed 31 percent.
Operating margin for the quarter was up 10 basis points from last year to 3.7 percent, while non-GAAP margin improved to 4.5 percent from 4.2 percent.
Jabil expects fourth quarter net earnings of $0.43 to $0.55 per share and core earnings of $0.54 to $0.66 per share. Revenue is estimated in the range of $4.1 billion and $4.35 billion.
Analysts currently expect earnings of $0.68 per share on revenue of $4.37 billion for the fourth quarter.
Jabil CEO Timothy Main said, "We are delighted with the outstanding performance of our Diversified Manufacturing Services sector overall and we are actively expanding our capacity in order to meet the growing demands of numerous customers and products."
"The ramp-up of new products, combined with specific customer challenges and muted end-markets give us plenty to focus on in the fourth fiscal quarter."
Jabil shares closed Tuesday at $19.41, up $0.40 or 2.10%, on a volume of 4.8 million shares on the NYSE. In after hours, the stock dropped $0.17 or 0.88%. In the last one-year period, the stock has traded in a range $13.94 - $27.40.
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