Jabil hits 52-week high on revenue report
Tampa Bay Business Journal June 18, 2003
Jabil Circuit Inc. on Wednesday reported record revenue for the third quarter of fiscal 2003 ended May 31 but a drop in net income and earnings.
Revenue increased 43.3 percent to $1.2 billion, compared with $850,000 for the same period in fiscal 2002.
On a GAAP basis, net income for the third quarter of fiscal 2003 was $4.5 million, compared with $20.8 million for the same period in fiscal 2002, a release stated. GAAP diluted earnings per share for the third quarter of fiscal 2003 were 2 cents, compared with 10 cents for the same period in fiscal 2002.
Gross profit for the third quarter of fiscal 2003 increased 34.3 percent to $112.6 million or 9.2 percent of revenue, compared with $83.9 million or 9.9 percent of revenue for the same period in fiscal 2002.
On a GAAP basis, operating income for the third quarter of fiscal 2003 was $2.5 million, compared to $27.9 million for the same period in fiscal 2002.
Other highlights of the report were:
- Third quarter revenue increased 6.4 percent compared to the prior quarter.
- GAAP operating income was $2.5 million for the third quarter in fiscal 2003.
- Core operating income increased 13 percent to $47.8 million from the second quarter in fiscal 2003.
- GAAP earnings were $4.5 million for the third quarter of fiscal 2003.
- Core earnings were $38.2 million or 3.1 percent of revenue for the third quarter in fiscal 2003.
- Fully diluted GAAP earnings per share for the quarter were 2 cents on 202,132,000 average shares.
- Fully diluted core earnings per share for the quarter were 19 cents on 202,132,000 average shares.
A release stated that the company fourth-quarter 2003 revenue to increase 3 percent to 7 percent -- in a range of $1.25 billion to $1.3 billion.
Jabil posts Q3 profit, sees revenues rising
By Jim Christie / Reuters June 18, 2003
Jabil Circuit posted quarterly earnings at the high end of cautious Wall Street expectations after stripping out one-time charges as revenues rose 43 percent.
The St. Petersburg, Florida-based contract manufacturer also forecast higher current-quarter revenues amid largely stable markets for a variety of technology products it manufacturers for other companies.
Jabil shares ticked higher in after-market trade to $24.45 after closing at $24.21
The company posted net income of $4.5 million, or 2 cents per share for its fiscal third-quarter ended May 31, compared with $20.8 million, or 10 cents per share, a year earlier.
Revenues rose to $1.2 billion from $850.6 million a year earlier.
The rival of Flextronics International Ltd. FLEX.O , Sanmina-SCI Corp. SANM.O and Solectron Corp. SLR.N reported earnings before items of 19 cents a share, or a penny better than Wall Street analysts had expected on average.
Jabil Chief Executive Tim Main said he remained cautious regarding demand trends but noted that some of the gloom cast by the war in Iraq and SARS is lifting. "There is more of a pep in the step of people as they conduct business day to day," Main told Reuters. "If we get some tailwind, it will be all the better."
BEATING EXPECTATIONS
Jabil had forecast earnings before items of 17 cents to 19 cents per share on revenues rising 5 percent to 8 percent to $1.2 billion to $1.24 billion from the second quarter.
Analysts had on average expected Jabil, whose customers include tech heavyweights Cisco Systems Inc. CSCO.O , Dell Computer Corp. DELL.O , Hewlett-Packard Co. HPQ.N and Intel Corp. INTC.O , to post a profit before items of 18 cents a share and sales of $1.22 billion, according to Reuters Research.
Contract manufacturers have been hit hard by the long-running tech slump, which forced them to impose dramatic restructurings and to diversify customers to limit exposure to battered industries such as telecommunications.
Jabil said its restructuring plan is on track and expects to record $88 million in charges for the fiscal year 2003, including a $12 million charge in the fiscal fourth quarter.
The company also said it expects revenues for its current fourth quarter to rise 3 percent to 7 percent to a range of $1.25 billion to $1.3 billion from the just-completed period.
Jabil also expects fourth-quarter earnings before items of 19 cents to 21 cents per share and net income of 10 cents to 12 cents per share. Analysts polled by both Reuters Research and Thomson First Call had on average expected fourth-quarter earnings before items of 20 cents per share.
"The guidance was squarely in line with our expectations," said Chris Whitmore, an analyst with Deutsche Bank Securities. "End markets are fairly stable." However, Whitmore cautioned that Jabil would be challenged to grow its business in its next fiscal year if tech industry demand does not recover as expected.
Revenue Climbs, Profit Falls at Jabil
TheStreet.Com 06/18/2003
Jabil Circuit an electronics manufacturing services provider, said third-quarter revenue rose from the same period a year ago, but net income fell.
Revenue rose 43.3% to $1.2 billion from $850 million in the same quarter last year. The company earned $4.5 million, or 2 cents a share, compared with $20.8 million, or 10 cents a share last year, when calculated according to generally accepted accounting principles.
Third-quarter core earnings rose to $38.2 million, or 19 cents a share, from $24.4 million, or 12 cents a share, for the same period in fiscal 2002.
Jabil defines core earnings as GAAP net income before the amortization of intangibles, acquisition-related charges, restructuring and impairment costs and other income. Analysts polled by Thomson First Call were expecting earnings of 18 cents.
For the fourth quarter, Jabil is calling for revenue to increase sequentially 3% to 7%, reaching $1.25 billion to $1.3 billion. Jabil expects core operating income to increase sequentially 5% to 10%, resulting in core earnings of 19 cents to 21 cents a share. GAAP profits are estimated to be 10 cents to 12 cents.
The company also said its restructuring program is on track and it plans to record $88 million in charges for fiscal 2003, including a $12 million charge in the fiscal fourth quarter.
Analysts are looking for a profit of 20 cents in the fourth quarter and 70 cents for the year. The consensus revenue forecast is $1.29 billion for the quarter and $4.72 billion for the company's fiscal year.
Jabil expects flat to slight revenue growth for fourth quarter
By Claire Serant / EBN (06/18/2003 6:00 PM EST)
Despite having a more diversified customer portfolio, Jabil Circuit Inc. is forecasting flat to slightly higher sequential revenue growth for its fourth quarter of 2003.
For the quarter ending Aug. 31., the St. Petersburg, Fla., EMS provider expects revenue of $1.25 billion to $1.3 billion and earnings per diluted share to range from 10 to 12 cents. The company also plans take $12 million in restructuring charges in the fourth quarter. For fiscal 2003, Jabil's restructuring fees are expected to total $88 million.
The communications market-dependent contractor has beefed up its presence in several other areas, including automotive, consumer, and industrial electronics in response to weak telecom demand.
"By focusing on growing and diversifying our business, fine turning our manufacturing operations and global plant sites, we have put up solid results in a very challenging environment," said Tim Main, Jabil's president and chief executive officer, in a statement.
For the recent third quarter ended May 31, Jabil reported net income of $4.5 million, or 2 cents per share, compared to net income of $20.8 million, or 10 cents per share, in the year-ago third quarter.
The recent third quarter brought Jabil higher revenue of $1.21 billion compared to $850.6 million in corresponding year-ago quarter. |
