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Jabil (JBL) Shares Surge 7% on Strong Q1 Results, Q2 Guidance; Analysts Wiegh In

December 21, 2010 9:11 AM EST Send to a Friend
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Price: $19.77 --0%

Rating Summary:
    6 Buy, 3 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 16 | New: 28
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Shares of Jabil Circuit Inc. (NYSE: JBL) are up more than 7 percent in premarket trade on Tuesday after the company reported that its fiscal first-quarter net income more than tripled on strong revenue growth.

The maker of parts for electronic and other technology companies reported on Monday first-quarter earnings of 61 cents per share, 6 cents better than the analyst estimate of 55 cents per share.

Revenue for the company rose 32 percent to $4.08 billion from $3.09 billion last year, beating the market consensus of $3.96 billion.

“We believe our focus on diversification and a differentiated business model will allow us to continue growth throughout 2011,” said Timothy L. Main, Jabil’s President and CEO. Main said, “We see good momentum in our three business segments as we continue on a record setting pace for fiscal 2011.”

Looking forward, the company sees second-quarter earnings of 49 cents to 53 cents per share on sales of $3.85 billion to $3.95 billion, compared to the Street's view of 44 cents and $3.7 billion respectively.

On Tuesday, Needham & Company reiterated a 'Strong Buy' on Jabil Circuit, while raising its price target from $23 to $25.

Needham analyst says, "Jabil is sitting in the driver’s seat of a business that has not only benefited from recovered end markets, but also from the beginnings of strategic re-positioning. While much of the incremental mix diversification may not materialize in the model for a few years, early decisions to capitalize on sticky and healthy-margin business in higher growth areas are providing robust earnings momentum today."

Goldman Sachs reiterated a Buy rating on Jabil, while raising its price target from $21 to $22. The firm called the results "strong.

Shares of Jabil are up 7.19 percent to $18.87 in premarket trade on Tuesday.




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Timothy L. Main, Needham & Company, Earnings

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