JBL, from briefing.com...
> 12:57 ET ******
>
> Jabil Circuit (JBL) 66 1/4 +1 3/4: The EMS (Electronic Manufacturing Services)
> sector has had a stellar quarter. Over the past three months, CLS shares are up
> 76%, SCI +60%, JBL +54%, SANM +45%, FLEX +40%, SLR +26%. A note out of Lehman
> Bros. suggests that it soon may be time to take some profits. First, a
> qualifier: fundamentals remain strong industry wide, and for long-term
> investors, the sector remains very attractive. Jabil Circuit shares recently
> broke through to new 52-week highs and are up over 20% in the past four weeks
> and over 90% YTD. The company is set to report Q4 results after the close
> Tuesday, September 19. While we have little doubt that JBL will once again post
> a strong quarter, we are concerned that some profit taking could follow the
> release. Lehman Bros. is too, their Q4 JBL preview is subtitled, "Will Great
> Results be Enough?" Of course it is impossible to predict overall market
> sentiment for a given day two weeks in advance, and a tech rally could lead JBL
> shares higher after the release, but with the run JBL shares have had, we
> suspect the odds are stacked in favor of some profit taking. That said, here's
> what we'll be looking for in the Q4 release. Earnings are projected to come in
> at $0.24 per share according to all 24 analysts polled by First Call. revenues
> should come in just north of $1 bln, which would represent y/y growth of over
> 90% from last year's $536.5 mln. in Q4. For the fiscal year, sales should add up
> to about $3.5 bln with EPS of $0.80. Very strong results are being factored in
> to JBL's share price, and while we expect the company to meet expectations,
> we're not sure that will be enough to keep the rally alive. However, three
> factors could work against a pullback: 1) Positive overall market sentiment, 2)
> JBL shares pull back in the next two weeks, allowing them to rally off the
> strong earnings release, 3) a major OEM contract win. Any combination of those
> factors could contribute to further momentum in JBL shares. - Matt Gould,
> Briefing.com |
