For Immediate Release
Chicago, IL – June 19, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Jabil Circuit Inc. (NYSE:JBL), Cisco Systems Inc. (CSCO), Apple Inc. (AAPL), Flextronics International Ltd. (FLEX) and Sanmina-SCI Corp. (SANM).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday’s Analyst Blog:
Earnings Preview: Jabil Circuit
Jabil Circuit Inc. (NYSE:JBL) is set to announce its fiscal third quarter 2012 results after the closing bell on June 19, 2012. In the run up to the earnings results, we did not notice any substantial movement in analysts’ estimates for the quarter.
Prior Quarter Highlights
The company reported second quarter 2012 earnings of 48 cents per share, which missed the Zacks Consensus Estimate by a penny. However, earnings increased 8.1% year over year from 45 cents per share (including stock-based compensation but excluding amortization), primarily driven by solid top-line growth.
Revenues increased 7.8% year over year to $4.24 billion and edged past the high end of management’s guided range of $4.0 billion to $4.2 billion. Quarterly revenues surpassed the Zacks Consensus Estimate of $4.10 billion. Higher quarterly revenues were attributable to market share gains, new customer wins and strong growth from the emerging markets.
Jabil expects net revenue in the range of $4.2 billion to $4.4 billion for the third quarter of 2012 (up approximately 2.0% on a year-over-year basis). Revenue estimate as per Zacks Consensus is pegged at $4.29 billion. Jabil expects non-GAAP earnings per share to be between 60 cents and 70 cents for the third quarter.
For further details please see: Jabil Reports Mixed 2Q
Estimation Revisions Trend
Over the past 30 days, none of the five analysts covering the stock revised their estimates. Thus, the Zacks Consensus Estimate for the third quarter stayed at 56 cents per share. Analysts’ estimates range from 55 cents to 58 cents.
Though Jabil has a positive average earnings surprise of 0.68%, the company has failed to beat the Zacks Consensus Estimate in three out of the four preceding quarters. For the current quarter, analysts covering the stock expect Jabil to be negatively affected by the weaker-than-expected results of its customers, such as Cisco Systems Inc. (CSCO).
However, Jabil’s Diversified Manufacturing Segment (”DMS”) is expected to witness top-line expansion on the back of Apple Inc.’s (AAPL) new iPhone in the forthcoming quarter. Moreover, the shift towards higher margin DMS segment is expected to drive margins in the long run.
Jabil is expected to benefit from strong growth in the Mobility, Aerospace and Defense, Healthcare, Instrumentation and Industrial, Clean Tech, Networking and Storage segments over the long term. Moreover, expansion of global business and strategic acquisitions are positives for the stock.
However, the company faces strong competition from Flextronics International Ltd. (FLEX) and Sanmina-SCI Corp. (SANM), which along with the high debt level and sluggish economic conditions in Europe and the U.S. are the near term headwinds going forward.
Currently, Jabil has a Zacks #4 Rank, which implies a ‘Sell’ rating on a short-term basis.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: https://twitter.com/zacksresearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
More From Zacks.com