Jabil Circuit Preview: Earnings Returning To Healthy Levels

Shares of Jabil Circuit, Inc. JBL are surging on Tuesday, ahead of the announcement of the company’s third-quarter financial results, scheduled for Wednesday after the market closes. And, as it can be seen in the chart below, expectations point toward a huge year-over-year increase in earnings.

In the third quarter of 2014, the firm registered a net loss of ($0.06) per share on revenue of $3.786 billion. For the current quarter, management guided earnings come in at $0.49 per share and revenue of $4.45 billion. The Street expects consensus earnings in line with guidance, although on slightly higher sales of $4.463 billion (Estimize).

The crowd is marginally more bullish and projects consensus earnings of $0.50 per share on revenue of $4.473 billion.

The table above shows a history of Jabil’s earnings, sales and growth rates versus estimates.

The Cheat Sheet

In a report published last Thursday, RBC Capital Markets analyst Amit Daryanani said he expects Jabil to report third-quarter results in line with consensus, as EMS headwinds will be mostly offset by a better DMS performance, driven by Apple Inc. AAPL’s own strength.

Related Link: Jabil Circuit Earnings "Cheat Sheet"

The expert anticipates revenue of $4.45 billion and earnings of up to $0.51 per share. For the full year, he models earnings of $2.09 per share; for 2016, $2.52 per share.