Jabil Circuit Posts Downbeat Q3 Revenue, Issued Weak Revenue Forecast

Shares of

tumbled more than 8 percent in after-hours trading after the company reported results for its fiscal third quarter and issued a weak guidance for the current quarter. The St. Petersburg, Florida-based company reported quarterly net income of $72.2 million, or $0.37 per share, compared to $188.3 million, or $0.93 per share, in the year-ago period. Excluding one-time items, the company's core earnings came in at $0.49 per share, versus a year-ago loss of $0.06 per share. Its revenue climbed 15 percent year-over-year to $4.36 billion in the period. However, analysts were expecting earnings of $0.49 per share on revenue of $4.46 billion. The average estimate among 14 Estimize users was for earnings of $0.52 per share and revenue of $4.48 billion. Revenue from its Electronics Manufacturing Services segment came in at $2.8 billion in the quarter, while revenue from its Diversified Manufacturing Services segment came in at $1.6 billion. Its gross margin widened to 8.6 percent from 5.7 percent. Its operating income in the latest quarter came in at $135.4 million, versus an operating loss of $1.6 million. "We continue to make great progress as we further diversify our business, and our fiscal third quarter is another good indication that we're executing against our growth strategy. During the quarter, our Electronics Manufacturing Services segment delivered strong operating performance, while our Diversified Manufacturing Services segment increased revenue by 41 percent year over year," said Mark T. Mondello, Chief Executive Officer. "I'm pleased with our performance year to date and I believe we're well-positioned and poised to capture further growth in fiscal 2016." For the current quarter, Jabil projects core earnings of $0.40 to $0.50 per share, on revenue of $4.45 billion to $4.65 billion. Analysts expected earnings of $0.47 per share on revenue of $4.74 billion. For the full year, Jabil expects core earnings of $1.95 to $2.05 per share, on revenue of $17.7 billion to $17.9 billion. Jabil Circuit shares fell 8.55 percent to $22.25 in after-hours trading.