For the balance of fiscal 1998, the Company anticipates
that revenue will slow to near the level of the first fiscal
quarter of the year, with a resumption of growth in the fall
quarter. The Company expects lower operating income over the
next two quarters resulting from lower demand for production
and new product transitions for existing customers.
JBIL had revenue of $319MM for 1Q98. It just reported revenue
of $330.7MM for 2Q98. If the above paragraph is true, assume
revenue of $319MM for Q3 and Q4. That totals $1.28 Billion
for FY98.
In contrast, revenue for FY97 was $978MM. The projected revenue
increase, therefore, for 1998 over 1997 is about 31 percent.
Doesn't seem bad to me.
Also, JBIL had earnings in FY97 of $1.37/sh. In FY98, it will
have earnings of .49 (Q1) + .52 (Q2) + .45 (Q3)(my guess)
+ .45 (Q4)(my guess) = $1.91/sh. That is an increase of about
40 percent over 1997. Doesn't seem bad to me.
Unless I'm missing something, the market sure seems to have
overreacted to this single paragraph in an otherwise positive
report.
Gary Korn
P.S. Below is the Market Guide source of the data I used:
Jabil Circuit, Inc. QUARTERLY SUMMARY Page 2 of 10
HISTORICAL QUARTERLY RESULTS(Thousands of U.S. Dollars)
REVENUE 1995 1996 1997 1998
1st Qtr NOV 107,191 233,855 203,070 319,512
2nd Qtr FEB 114,447 235,628 222,187
3rd Qtr MAY 132,441 219,701 247,637
4th Qtr AUG 205,395 174,101 305,208
EPS (U.S. Dollars per share)
1st Qtr NOV 0.060 0.155 0.235 0.490
2nd Qtr FEB -0.025 0.170 0.290
3rd Qtr MAY 0.040 0.165 0.380
4th Qtr AUG 0.160 0.175 0.470 |
