I still need to hear the JBL CC to figure out which sectors are strong. Overall I see the market breaking down, only the COMPX has not significant breached the recent support areas.
Those strong sectors for JBL will probably bounce first and break down last. I am not looking to start long position quite just yet though.
On a related note, any idea who has the manufacturing contrast for the convert boxes that will provide the conversion for the switch to HDTV. I think there are still a lot of people that have not swithced over yet.
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Jabil Circuit soars on quarterly results
Better-than-expected gain also helps Nokia
By MarketWatch
Last update: 9:06 a.m. EDT June 25, 2008WASHINGTON (MarketWatch) -- Shares of Jabil Circuit Inc. climbed as much as 9% in premarket action Wednesday after the company exceeded Wall Street's forecast for quarterly profit.
The maker of components for electronic equipment such as wireless phones and computers also issued a rosier forecast for the current fourth quarter.
The news not only boosted shares of St. Petersburg, Fla.-based Jabil (JBL:Jabil Circuit Inc
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Last: 16.48+2.15+15.00%
11:43am 06/25/2008
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JBL 16.48, +2.15, +15.0%) but also those of Nokia Corp., whose shares jumped as much as 5%.
Investors evidently saw the results as a sign that Nokia (NOK:Nokia Corp
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11:42am 06/25/2008
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NOK 26.18, +1.52, +6.2%) , one of Jabil's largest customers, is still seeing plenty of demand for its handsets despite a global economic slowdown.
In the fiscal third quarter ended May 31, meanwhile, Jabil posted net profit of $38.4 million, or 19 cents a share. That was up from $6.2 million, or 3 cents a share, in the year-earlier period.
Revenue rose 3% to $3.1 billion from $3 billion, the company reported after U.S. markets closed Tuesday.
Adjusted for one-time costs, the electronics manufacturer said it would have earned 26 cents a share. By contrast, analysts surveyed by FactSet Research had forecast Jabil to earn 20 cents a share on $3.08 billion in sales.
"The results from our third quarter were extremely gratifying given the challenging market conditions," Chief Executive Timothy L. Main said in a statement.
Shares of Jabil (JBL:Jabil Circuit Inc
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JBL 16.48, +2.15, +15.0%) jumped to $15.78 in pretrades after the stock closed Tuesday at $14.33.
Just a few months earlier, Jabil's stock took a plunge after the company warned that it would not meet its original third-quarter forecast. Its stock has lost 6% of its value so far in 2008.
Yet Jabil not only exceeded its forecast, the company now says it expects its third-quarter performance to carry over into the fourth quarter.
Jabil predicted it would earn an adjusted 29 cents to 33 cents a share on revenue of $3.2 billion to $3.3 billion, compared to Wall Street's forecast of 29 cents a share in profit and $3.19 billion in sales.
Some analysts remained cautious, however, after the conference call with Jabil executives.
"The company is not seeing tangible weakness as a result of the economic environment, but the cautionary language is a little troubling," Paras Bhargave of BMO Capital Markets wrote in a note to clients. |
