Needham & Company Remains Bullish Despite Jabil Circuit's (JBL) Weak 2Q Results

Needham & Company maintained a Buy rating on Jabil Circuit (NYSE: JBL), and cut the price target to $25.00 (from $29.00), following the company's 2Q earnings report. JBL reported F2Q results of $4.4B and $0.57 in non-GAAP EPS (ex. opt), vs. guidance for $4.4-4.7B/$0.54-0.70 (consensus $4.5B/$0.60).

Analyst Sean Hannan commented, "Although results and guidance clearly disappointed the Street, much appears to be explainable by the timing of the wind-down of the midplatform cycle ahead of summer builds/ramps for AAPL's next product launch. In general, we believe most of the EMS business is serving as a stable anchor with modest growth while we expect DMS to pick up momentum in 2HC16 not only from the upcoming launch but also as a function of ongoing share gains. With margin expansion and positive leverage expected in the medium term and further diversification across customers and product segments long-term, we believe JBL remains well positioned. Maintain Buy."

For an analyst ratings summary and ratings history on Jabil Circuit click here. For more ratings news on Jabil Circuit click here.

Shares of Jabil Circuit closed at $21.96 yesterday.

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