Q1 Preview: Investors Concerned with Jabil's (JBL) Cisco Exposure Into Earnings (CSCO)
Tweet
Share
E-mail
Get Alerts JBL Hot Sheet
Price: $313.21 -1.09%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.1%
EPS Growth %: +23.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.1%
EPS Growth %: +23.4%
Join SI Premium – FREE
Jabil Circuit Inc. (NYSE: JBL) is higher ahead of the company's first quarter earnings report, expected out after the market closes today. Shares are up 0.46% today.
JBL is expected to report an EPS of $0.55 on revs of $3.96 billion. The St. Petersburg, FL-based electronics manufacturer reported an EPS of $0.52 on revs of $3.9 billion last quarter, beating views calling for an EPS of $0.49 with revs of $3.89 billion. For Q110, Jabil reported an EPS of $0.32 and revenues of $3.1 billion, compared to the consensus EPS of $0.29 with revs of $3.1 billion.
Shares of the company moved 39% higher through the quarter, to $15.11 at the end of November. Shares are currently up 16.2% since the end of the quarter, and just 1.3% on the year to-date.
Data from Bloomberg has 12 analysts with a Buy on JBL, 4 with a hold, and none suggest to Sell. The analyst price target average is $19, with a high of $23 and low of $15.
Summary
Jabil guided a Q111 adjusted EPS of $0.53 - $0.57 on revs of $3.9 - $4.0 billion.
Goldman Sachs thinks that results should be strong, and Cisco-related weakness should already be factored into the share price. The weakness should also be offset by diversified manufacturing services, which accounts for 1/3 of total revs. Operating margin should expand by 0.2% to 4.3%. Despite the gains though the quarter, Goldman still sees some upside left for additional 'catch-up' performance.
Goldman is expecting an EPS of $0.56 with revs of $3.96 billion. They currently rate shares a Buy with a $21 price target.
Wedbush is looking for an EPS of $0.54 on revs of $3.93 billion, being cautious on the telecommunications segment. Wedbush notes the exposure to Cisco (Nasdaq: CSCO), and are only expecting muted growth in JBL's consumer-facing segments. Their checks point to in-line demand increases as well as easing in component constraints. Wedbush sees little room for upside in the shares, with operating margins at peak levels.
Key focus areas for Wedbush are: 1) Growth in Diversified Manufacturing Services revenue, 2) Overall endmarket demand trends, 3) Progress at Jabil Green Point, 4) Success at diversifying away from top 10 customers, 5) further Op Mgn leverage.
Wedbush has a Holding rating, with a $15 price target.
Jabil Circuit is expected to release their Q111 earnings on Monday, December 20, 2010, at approximately 4:00pm EST. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results withi0 n seconds of their release.
JBL is expected to report an EPS of $0.55 on revs of $3.96 billion. The St. Petersburg, FL-based electronics manufacturer reported an EPS of $0.52 on revs of $3.9 billion last quarter, beating views calling for an EPS of $0.49 with revs of $3.89 billion. For Q110, Jabil reported an EPS of $0.32 and revenues of $3.1 billion, compared to the consensus EPS of $0.29 with revs of $3.1 billion.
Shares of the company moved 39% higher through the quarter, to $15.11 at the end of November. Shares are currently up 16.2% since the end of the quarter, and just 1.3% on the year to-date.
Data from Bloomberg has 12 analysts with a Buy on JBL, 4 with a hold, and none suggest to Sell. The analyst price target average is $19, with a high of $23 and low of $15.
Summary
Jabil guided a Q111 adjusted EPS of $0.53 - $0.57 on revs of $3.9 - $4.0 billion.
Goldman Sachs thinks that results should be strong, and Cisco-related weakness should already be factored into the share price. The weakness should also be offset by diversified manufacturing services, which accounts for 1/3 of total revs. Operating margin should expand by 0.2% to 4.3%. Despite the gains though the quarter, Goldman still sees some upside left for additional 'catch-up' performance.
Goldman is expecting an EPS of $0.56 with revs of $3.96 billion. They currently rate shares a Buy with a $21 price target.
Wedbush is looking for an EPS of $0.54 on revs of $3.93 billion, being cautious on the telecommunications segment. Wedbush notes the exposure to Cisco (Nasdaq: CSCO), and are only expecting muted growth in JBL's consumer-facing segments. Their checks point to in-line demand increases as well as easing in component constraints. Wedbush sees little room for upside in the shares, with operating margins at peak levels.
Key focus areas for Wedbush are: 1) Growth in Diversified Manufacturing Services revenue, 2) Overall endmarket demand trends, 3) Progress at Jabil Green Point, 4) Success at diversifying away from top 10 customers, 5) further Op Mgn leverage.
Wedbush has a Holding rating, with a $15 price target.
Jabil Circuit is expected to release their Q111 earnings on Monday, December 20, 2010, at approximately 4:00pm EST. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results withi0 n seconds of their release.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- Ross Stores, Inc. (ROST) PT Raised to $240 at Bernstein SocGen Group
- Arena Group to rename as Paradium.AI, ticker changing to PAAI
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
