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Technology Stocks : Jabil Circuit (JBL) -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (5778)	3/21/2001 11:31:16 AM
From: OldAIMGuy	Respond to of 6317

JBL was featured on CNBC just before the market opened today. Interviewed the CEO. I only heard a couple of minutes of the talk. Here's the link, however. cnbc.com Best regards, Tom

To: OldAIMGuy who wrote (5778)	3/21/2001 10:46:53 PM
From: Asymmetric	Respond to of 6317

Tom, Here's some mo' stuff. Briefing.Com (3/21/01) Jabil Circuit (JBL) 18.12: Shares in Jabil Circuit are bidding higher in after hours activity following the release of their second quarter results. The Electronics Manufacturing Services (EMS) provider reported earnings for the quarter of $0.21 per share which beat the First Call consensus estimate by a penny. Revenues of $1.21 billion were also ahead of the consensus estimate for $1.14 billion. These numbers were impressive as they represent topline growth of 44% and bottom line growth of 22%. The disparity between the two growth rates was largely due to a squeeze on operating margins which dropped to 4.9% in the current quarter versus 6.1% for the corresponding quarter of fiscal year 2000. Notably, JBL dropped 11% ahead of today's earnings release in part because of cautious comments out of industry peer Solectron (SLR) which reported quarterly results yesterday. Not surprisingly, JBL followed up with some caution of its own tonight by guiding down expectations for both quarter three and quarter four results. The company says a combination of inventory corrections and softened end-market demand are responsible for the downward revision. JBL now expects third quarter revenue in the range of $1.0 billion to $1.1 billion and earnings of $0.15 to $0.18 per share. Prior to this guidance, third quarter consensus expectations according to First Call had been for $0.25 per share. Citing limited visibility going forward, JBL opted not to provide forward guidance for quarter four. Adding to the adverse outlook for the second half of the year, JBL will be incurring $20-$25 million in charges over the next two quarters as a consequence of restructuring and acquisition integration. So as an investor, the current quarter looked decent but the outlook for the next two quarters didn't look so great. This begs the question "Why is JBL trading higher in the late session?" Well... for the moment at least, investors feel the cautious forward outlook has been priced into the shares. Markets generally price out six months which theoretically accounts for JBL's upcoming two quarters. But note how trading higher on a warning is the inverse of trading lower after beating the estimate. Just a year ago it was commonplace for a business to destroy the consensus estimate on the upside and lose 15 points after hours. That phenomenon became more prevalent as the Nasdaq got closer to collapsing. Now market activity like that seen in JBL tonight is becoming somewhat more common. Businesses are issuing warnings and nonetheless trade higher on the release. Signs of a market bottom? Nobody can say for certain but it feels as if the formation of a bottom may be underway at the very least. As for JBL, tonight's trade activity is encouraging as it signals maybe the worst case scenario has indeed been priced into the stock. Nonetheless, JBL did create a new yearly low today and, for the near term at least, there may be better investment alternatives. -- Michael Ashbaugh, Briefing.com