Skip to main content

Market Overview

Jabil Circuit's Q1 Solid Despite Weakness In Its Apple-Related Business

Share:

Shares of Jabil Circuit, Inc. (NYSE: JBL) set a new 52-week high of $25.14 after reporting better-than-expected first quarter results despite weakness in its Apple Inc. (NASDAQ: AAPL)-related business.

Jabil’s first quarter sales of $5.1 billion and EPS ex-options of $0.69 beat Consensus at $4.9 billion /$0.64. The second quarter guidance was for sales of $4.2-$4.5 billion and EPS of $0.35 -$0.57, in line with the Street’s $4.36 billion/$0.46, at the midpoint.

The solid results were attributed to strong Diversified Manufacturing (DM) sales and Electronics Manufacturing (EM) margins.

“F2Q-17 guidance was in-line at the midpoint, but mgmt's comments about F4Q-17 were well above expectations, driven by a positive view on mobility and 20%+ growth in healthcare and packaging,” Deutsche Bank analyst Sherri Scribner wrote in a note.

On the flip side, Jabil’s Apple-related business was weaker than expected and lower product volumes and heavy OpEx spend ahead of new product ramps are expected to hurt DM profitability in the second and third quarters.

However, Jabil hopes that mobility (Apple) will have a strong fourth quarter and expects DM sales to approach revenue run rates similar to two year ago of $1.9 billion.

“We are raising our PT to $22 from $20 on a move to FY-18 for valuation, but given challenges to some segments are offset by strength in mothers, we view current valuations as fair and maintain our Hold,” Scribner added.

At last check, shares of Jabil Circuit surged 15.60 percent to $24.93.

Latest Ratings for JBL

DateFirmActionFromTo
Dec 2020Goldman SachsDowngradesBuyNeutral
Sep 2020RBC CapitalMaintainsSector Perform
Sep 2020CitigroupMaintainsBuy

View More Analyst Ratings for JBL
View the Latest Analyst Ratings

 

Related Articles (JBL)

View Comments and Join the Discussion!

Posted-In: Deutsche Bank Sherri ScribnerAnalyst Color Price Target Reiteration Analyst Ratings Tech

Latest Ratings

StockFirmActionPT
PBTruist SecuritiesMaintains88.0
CFRTruist SecuritiesMaintains111.0
FANGTruist SecuritiesMaintains105.0
NPOOppenheimerMaintains95.0
SBNYCredit SuisseMaintains250.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com