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Jabil Circuit Shares Rally on Q1 Results (JBL)

Shares of Jabil Circuit Inc. (NYSE: JBL), a provider of worldwide electronic manufacturing services and solutions, are soaring in trading today after the company reported its first-quarter financial results.

For the first quarter of fiscal 2013, JBL reported revenue of $4.6 billion. Timothy L. Main, President and CEO of Jabil Circuit, said that Diversified Manufacturing Services rose to 47% of the company’s overall business, paced by outstanding growth in Specialized Services.

JBL reported a 20% increase Diversified Manufacturing Services business for the quarter. Enterprise & Infrastructure business, meanwhile, registered a 17% increase in the first quarter of fiscal 2013. High Velocity business fell 20% during the quarter.

JBL reported first-quarter operating income of $170 million. On a non-GAAP basis, operating income for the first quarter was $193 million. The company reported earnings of $0.51 per share. Non-GAAP earnings for the quarter were $0.61 per share.

Forbes Alexander, CFO of Jabil Circuit, said that the company generated cash flow from operations of $152 million during the quarter and as a result of this outstanding performance and the ongoing strength in balance sheet, the company was able to return $148 million in capital to shareholders during the first quarter of fiscal year 2013 through dividends and share repurchases. Alexander added that the company sees this positive performance continuing and continues to estimate operating cash flow of $1 billion in fiscal 2013.

JBL shares rose to an intra-day high of $20.29 in trading today before paring some of the gains. At last check, the stock was trading 8.99% higher at $20.24 on above average volume of 8.71 million. JBL shares have gained more than 13% in the last three trading sessions.

Year-to-date, JBL shares have gained 2.8%, underperforming the S&P 500, which gained more than 14.5% in the same period.

 

 


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