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Jabil posts lower 4Q profit but surpasses Street
Jabil Circuit posts lower 4th-quarter profit but results surpass analysts' expectations
* On Tuesday September 29, 2009, 4:47 pm EDT
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o Jabil Circuit Inc.
ST. PETERSBURG, Fla. (AP) -- Jabil Circuit Inc. posted a sharp drop in its fiscal fourth-quarter profit Tuesday, hurt by charges and lower revenue, but the electronics parts maker said the worst of the recession appears to be over.
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The company's results easily surpassed Wall Street's expectations and Jabil's own forecast, and shares surged in after-hours trading.
For the three months ended Aug. 31, the company earned $5.5 million, or 3 cents per share, down from a profit of $57.5 million, or 30 cents per share, in the same period a year earlier. Excluding items such as restructuring charges, the company earned 16 cents per share for the quarter.
Revenue fell 14 percent to $2.8 billion from $3.26 billion.
Analysts, on average, were expecting a profit of 8 cents per share on sales of $2.66 billion, according to a poll by Thomson Reuters. Analysts typically exclude one-time items from their estimates.
"Marked improvement in our sequential performance was aided by cost cutting, increased productivity, market share gains and a more benign end-market environment," said President and CEO Timothy L. Main in a statement.
For the full year, Jabil posted a loss of $1.17 billion, or $5.63 per share, down from a profit of $133.9 million, or 65 cents per share, a year earlier. Much of this loss was due to goodwill impairment charges.
Revenue fell 9 percent to $11.68 billion from $12.78 billion.
For the current quarter, Jabil expects earnings of 2 cents to 12 cents per share on sales of $3 billion to $3.2 billion. Excluding items, it is forecasting a profit of 24 cents to 32 cents per share.
Analysts are expecting earnings of 18 cents per share on sales of $2.88 billion.
Shares jumped $1.07, or 8.7 percent, to $13.35 in after-hours trading. The stock had closed the regular session down 10 cents at $12.28.
[Johnny: The conference call will give indications of what sectors are seeing strong demand. That will be confirmed in the coming weeks as the other tech companies report. PC demand will give an indication of the back to school sales and business demand, their automotive segment should still be weak, network products will be a wild card due to uncertain business demand.] |
