Electronic manufacturing services and solutions provider Jabil Circuit Inc. (JBL) will come to light with its third-quarter scorecard today after the market closes. Jabil Circuit makes products for companies including network gear supplier Cisco Systems, mobile phone giant Nokia and PC stalwart Hewlett-Packard.
Despite cost saving initiatives, Jabil Circuit, like others in the sector, is still feeling the pinch of the recession, as consumers cut back on discretionary purchases, and businesses curtail their electronics and IT spending. The consumer electronics industry is projected to generate $171 billion in U.S. shipment revenues in 2009, down 0.6% from 2008, according to the semi-annual industry forecast released by the Consumer Electronics Association.
The company expects third-quarter GAAP loss in the range of $0.07 - $0.23 per share on net revenue of $2.5 billion - $2.7 billion. Third-quarter core earnings are expected to range from a loss of $0.08 per share to profit of $0.08 per share. Analysts polled by Thomson Reuters are looking for earnings of $0.02 per share, on revenue of $2.62 billion, for the quarter. Analysts' estimates typically exclude special items.
In the year-ago quarter, the company reported GAAP net income of $38.4 million or $0.19 per share, on net revenue of $3.1 billion. Core earnings were $52.8 million or $0.26 per share for the prior-year quarter.
In the preceding second-quarter, the St. Petersburg, Florida-based company reported a GAAP net loss of $42.1 million or $0.20 per share, compared to a GAAP net loss of $24.0 million or $0.12 per share in the year-ago quarter. Net revenue for the second-quarter decreased 5.6% to $2.89 billion from $3.06 billion in the same quarter last year.
On April 9, Jabil Circuit said it reduced its reported second-quarter earnings results to reflect a non-cash goodwill impairment charge that resulted in a reduction of reported GAAP net income and earnings per share, not recorded in financial information reported on March 24, 2009. This non-cash charge does not impact the non-GAAP financial information presented in the March 24, 2009 press release.
Among others in the industry, Flextronics International Ltd. (FLEX) reported wider net loss for the fourth quarter of $240 million or $0.30 per share, compared to $93 million or $0.11 per share a year ago. Net sales for the quarter decreased to $5.58 billion from $7.78 billion in the prior-year quarter. For the first quarter, the Singapore-based company expects adjusted earnings to be in the range of $0.04 - $0.08 per share on revenues of $5.0 billion - $6.0 billion. Analysts currently expect earnings of $0.05 per share on revenues of $5.54 billion for the first quarter.
Sanmina-SCI Corp. (SANM) posted a GAAP net loss of $37.5 million or $0.07 per share for the second quarter, compared to a net loss of $39.9 million or $0.08 per share in the prior year quarter. Revenue for the second quarter declined to $1.2 billion from $1.8 billion in the same quarter of last year. For the third quarter of fiscal 2009, the company anticipates non-GAAP loss of $0.04 to $0.02 per share and revenues between $1.175 billion and $1.250 billion. The Street expects the company to incur a loss of $0.03 per share on revenue of $1.21 billion for the third quarter.
JBL is currently trading at $6.93, up $0.32.
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