How Jabil Circuit, Inc. (JBL) Can Push Higher

Page 1 of 2

On Wednesday, Jabil Circuit, Inc. (NYSE:JBL) will release its latest quarterly results. Even though the tech manufacturer has tried to emerge from the shadows by diversifying beyond its largest customer, Jabil Circuit, Inc. (NYSE:JBL) still faces plenty of competition from other companies seeking to stand behind some of the most popular products in technology.

Jabil Circuit, Inc. (NYSE:JBL)

Jabil Circuit is one of many companies focusing on making components for other businesses, giving up its own chance at the limelight in order to facilitate production for its customers and their innovative technological products. But with the nature of the contract-electronics business being fairly cutthroat, Jabil has to be on guard constantly to protect and preserve its lucrative relationships with its customers. Let’s take an early look at what’s been happening with Jabil Circuit, Inc. (NYSE:JBL) over the past quarter and what we’re likely to see in its report.

Stats on Jabil Circuit

Analyst EPS Estimate $0.54
Change From Year-Ago EPS (16%)
Revenue Estimate $4.4 billion
Change From Year-Ago Revenue 3.6%
Earnings Beats in Past 4 Quarters 1

Source: Yahoo! Finance.

How Jabil Circuit can push earnings back in the right direction
Analysts have gotten less optimistic about Jabil Circuit, Inc. (NYSE:JBL)’s earnings prospects recently, reducing their estimates for the May quarter by $0.08 per share and their full-year fiscal 2013 consensus by double that figure. The stock has done a good job of treading water, though, rising about 2% since mid-March.

Jabil is best known for its production of the aluminum case that houses the iPhone 5. The company has done its best to try to diversify away from its smartphone focus, with its purchase of plastics-maker Nypro aiming to help it move more broadly into consumer electronics as well as the unrelated field of health care. Yet Jabil Circuit, Inc. (NYSE:JBL)’s diversified manufacturing services segment produces by far the most impressive margins for the company, highlighting its continued reliance on the business.

As a result, the big threat that Jabil constantly faces is the potential loss of its customers. Rival Flextronics International Ltd. (NASDAQ:FLEX) suffered a huge hit last summer when major customer Research In Motion Ltd (NASDAQ:BBRY) chose to stop using the company to help it make its namesake smartphones, citing cost-cutting efforts in its decision to make changes to its supply chain arrangements. Flextronics International Ltd. (NASDAQ:FLEX) has seen substantial revenue declines as a result, even despite BlackBerry’s relative weakness in the smartphone space in recent years. More importantly, the move came at the worst possible time, as Research In Motion Ltd (NASDAQ:BBRY) has subsequently revived in the face of its latest product launch. Jabil Circuit, Inc. (NYSE:JBL) counts Research In Motion Ltd (NASDAQ:BBRY) as a customer as well, so it should be interesting to see how that relationship has developed in the wake of the Z10 and Q10 smartphone releases.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!