Jabil Circuit Drops 12% After Earnings Miss, Weak Guidance

is down more than 12 percent in after hours trading after the company announced its first quarter results. The company reported a Q1 EPS of $0.51 versus the Street estimate of $0.55. Earnings per share were down 16 percent from the year-ago period. Revenue arrived at $4.61 billion versus the Street estimate of $4.49 billion. Sales were down one percent year-over-year. During the second quarter, Jabil hopes to report an EPS between $0.05 and $0.15 -- considerably lower than the Street estimate of $0.54. The company's sales estimate (between $3.5 billion and $3.7 billion) is also lower than Wall Street's $4.35 billion prediction. In addition to its earnings results, Jabil also announced that it had signed a

to sell its Aftermarket Services business to iQor, a global provider of business process outsourcing services. "At iQor, we see more and more of our clients consolidating outsource service providers in order to reduce complexity and streamline operations, and this transaction addresses that market dynamic in a powerful way," Hartmut Liebel, CEO of iQor and former CEO of Jabil Aftermarket Services, said in a

. "In addition, this combination diversifies iQor's revenue stream, and enhances our ability to extend our platform by adding adjacent industries and capabilities over time." Jabil will sell its Aftermarket Services business for $725 million. Disclosure: