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."
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Shares of Jabil Circuit closed at $21.96 yesterday.