More on Jabil's Earnings Report:
Jabil reported fiscal year 2003 fourth quarter cash EPS of $0.20, in-line with First Call and our estimate, and at the midpoint of management’s guidance of $0.19-$0.21 per share. Cash EPS was up 5.3% sequentially and up 33.3% year-over-year. Revenue of $1.296 billion, up 6.3% sequentially and 31.1% year-over-year, was $17 million (or 1.3%) above consensus and $21 million (or 1.7%) above estimates of $1.275 billion. Jabil is recovering rapidly from the worst downturn in technology history, well ahead of many EMS competitors, tech OEM customers, and semiconductor suppliers.
Jabil’s consumer sector was up again this quarter by 8% sequentially (versus a 7% increase last quarter), in-line with the 8-10% sequential growth expectation from management as Jabil completed the final integration of the Philips consumer electronics business. Consumer is expected to increase 35% sequentially in the November quarter as Jabil enters its initial holiday season ramp-up for its Philips consumer electronics (DVDs, flat-panel TVs, set-top boxes, audio headsets, etc.) and other new consumer product ramps. For the February quarter, Jabil expects consumer to drop seasonally by 20%. The computer/storage end-market segment (15% of sales) held flat during the quarter, but dropped as a percentage of sales.
Jabil’s networking (21% of sales) was flat in the quarter after being down 3% last quarter, despite expectations of a 10-12% sequential increase including the NEC ramp. However, the ramping NEC broadcast and video equipment program was instead classified in the instrumentation/medical category rather than the networking segment, which accounted for the difference in expectations. Next quarter, networking is expected to remain flat as a result of general stability across all networking customers. The telecom segment (12% of sales) rose two percent sequentially, but fell as a percentage of sales from 13% last quarter. The telecom performance was better than previous expectations for a 7-8% decline. Without any expectation for a near-term telecom recovery, Jabil expects telecom to remain flat versus August results.
Revenues in the peripherals end-market segment (7% of sales) were up 6% in the quarter, versus previous expectations for a flat quarter as a result of overall better than expected demand. Next quarter, the peripherals segment is expected to remain stable. Revenues in the automotive sector (8% of sales) dropped 10% in August, partially the result of seasonal declines. The automotive sector is expected to rise 10-11% in the November quarter, reflecting normal seasonal order patterns. Instrumentation and medical (11% of sales) continues to shine as the segment grew 100% in the August quarter and is expected to grow another 5% in the August quarter. The majority of the strength was a result of the new NEC broadcast and video equipment business as well as ongoing ramp up of new programs from such customers as Enel, Agilent, Emerson, Symbol, and Abbott Labs.
Good luck to all.
Peter |
