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


To: Finder who wrote (3808)5/12/1998 8:40:00 PM
From: P Wright  Read Replies (1) | Respond to of 6317
 
Just performed some crude calculations to determine how Jabil's earning and revenues could possibly be impacted by this deal.

HP revenue / employee $364,000
HP earnings / employee $26,000
JBL revenues last 12 months $1,203m
JBL shares outstanding 37.2m

possible increase in revenues 364 000 X 600 = 218m (18%), $5.87 / share
possible increase in eps $26,000 X 600 = $15.6m, $0.42 / share

1999 eps $2.3 + 0.42 = $2.72 * 27(PE) = $73.44

Realize the above values for eps are probably too high as the average earnings per employee for HP manufacturing division is most likely lower than say for the consulting departments.