Contract electronics manufacturer Jabil Circuit Inc. (JBL: Quote) said Tuesday after the markets closed that its fourth quarter profit fell 28% from last year, as revenue growth remained subdued and expenses rose.
The company's quarterly earnings per share, excluding items, also came in below analysts' expectations. At the same time, the company gave a weak outlook for the first quarter.
"Results for the fourth quarter were negatively impacted by a challenging new program ramp in our Specialized Services sector," said Timothy Main, President and CEO of Jabil. "Additionally demand remained weak in most of our business segments."
Jabil also said that its Board of Directors has authorized the repurchase of up to $100 million worth of shares of the company's common stock during the next twelve months.
Jabil shares are currently losing 3.67% in after hours trading after closing the day's regular trading session at $20.97, down 40 cents or 1.87%. The shares are trading in a 52-week range of $16.62 to $27.40.
The St. Petersburg, Florida-based company reported net income for the fourth quarter of $82.8 million or $0.39 per share, compared to $114.3 million or $0.52 per share for the year-ago quarter.
Excluding items, adjusted net income for the fourth quarter was $113.3 million or $0.54 per share, compared to $136.3 million or $0.62 per share in the prior year quarter.
On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.58 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Operating margin for the quarter narrowed to 3.3% from 3.9% a year earlier, while adjusted operating margin shrank to 4.0% from 4.4% last year.
Net revenue for the fourth quarter grew 1.4% to $4.34 billion from $4.28 billion in the same quarter last year. Ten analysts had a consensus revenue estimate of $4.22 billion for the fourth quarter.
Looking forward to the first quarter, the company forecast net revenue of $4.3 billion to $4.5 billion, earnings of $0.37 to $0.50 per share and adjusted earnings of $0.51 to $0.62 per share.
Analysts currently expect the company to earn $0.67 per share on revenue of $4.52 billion for the first quarter.
"While the macroeconomic climate remains challenging, our long-term goals and competitive position are intact and we expect earnings to increase between five and ten percent in fiscal 2013," Jabil CEO Main.
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by RTT Staff Writer
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