Earnings Review and Free Research Report: Jabil’s Adjusted EPS Soared 82%

LONDON, UK / ACCESSWIRE / June 30, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Jabil Circuit, Inc. (NYSE: JBL), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=JBL, following the Company’s release of its third quarter fiscal 2017 financial results on June 13, 2017. The Company surpassed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at: http://protraderdaily.com/register/.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on JBL. With the links below you can directly download the report of your stock of interest free of charge at: http://protraderdaily.com/optin/?symbol=JBL.

Earnings Reviewed

For the three months ended May 31, 2017, Jabil reported revenue of $4.49 billion compared to revenue of $4.31 billion in Q3 FY16. The Company’s revenue numbers came in ahead of analysts’ expectations of 4.4 billion.

During Q3 FY17, Jabil’s GAAP operating income was $43.38 million compared to $59.60 million in Q3 FY16. The Company’s Core operating income, excluding amortization of intangibles, stock-based compensation, restructuring and related charges, was $114 million for the reported quarter and represented 2.5% of revenue.

For Q3 FY17, Jabil reported net loss of $25.70 million, or $0.14 per share, compared to earnings of $5.84 million, or $0.03 per share, in Q3 FY16. The Company’s earnings, adjusted for one-time items, totaled $0.31 per share versus $0.17 per share in the prior year’s same period and ahead of Wall Street’s expectations of $0.29 per share.

Segment Results

During Q3 FY17, Jabil’s Diversified Manufacturing Services segment generated revenue of $1.67 billion, an increase of 14% on a y-o-y basis and represented 37% of total Company revenue. Operating income for the quarter was 0.2%.

The Company’s Electronics Manufacturing Services segment recorded revenue of $2.82 billion for Q3 FY17, down 1% on a y-o-y basis, and this represented 63% of the Company’s total revenue. Operating income for this segment was 3.9% in the reported quarter, an improvement of 40 basis points on a year-over-year basis

Cash Matters

Jabil ended Q3 FY17 with cash balances of $744 million. The Company’s net capital expenditures for the reported quarter totaled $138 million, while capital expenditures on a year-to-date basis totaled $439 million. For FY17, Jabil is forecasting net capital expenditures to be $600 million

During Q3 FY17, Jabil’s cash flows from operations totaled $187 million with year-to-date cash flows being $533 million. The Company expects to deliver at least $1 billion of cash flows from operations in the full fiscal year.

Jabil stated that it is on track in its plan to return 40% of cash flows from operations via dividend and share repurchases through fiscal 2018 and up to a maximum of $1 billion. Till the end of Q3 FY17, the Company has returned some $390 million in dividends and share repurchases under this framework. Jabil stated that it has utilized approximately $330 million as of the end of the reported quarter, repurchasing some 14.8 million shares at an average price of $22.34.

Jabil noted that headcount reductions across its SG&A cost base are complete, and capacity realignment activity in high-cost locations is expected to occur in H1 FY18. The Company accrued charges associated with this plan of approximately $31 million in Q3 FY17, bringing year-to-date charges to approximately $110 million. The Company noted that based on its current estimates of the timing of the capacity realignment actions, full savings of $70 million to $90 million remain on track to be fully realized commencing in fiscal year 2019.

Outlook

For Q4 FY17, Jabil’s Diversified Manufacturing Services segment is expected to increase revenue by 26% on a y-o-y basis to approximately $2.05 billion, while the Electronics Manufacturing Services segment is expected to grow by 2% on a y-o-y basis to revenues of $2.85 billion. The Company is projecting total revenue in the upcoming quarter to be in the range of $4.7 billion to $5.1 billion.

Jabil’s core operating income is estimated to be in the range of $165 million to $215 million, with a core operating margin in the range of 3.5% to 4.2%. Core earnings per share are estimated to be in the range of $0.50 to $0.74 per diluted share and GAAP earnings per share expected to be in the range of $0.13 to $0.48 per diluted share.

For FY17, Jabil is estimating core earnings per share growth of 13%; cash flows from operations of at least $1 billion; capital expenditures of $600 million or less; while the Company plans to return approximately $370 million to shareholders via dividends and stock repurchases.

Stock Performance

At the closing bell, on Thursday, June 29, 2017, Jabil Circuit’s stock declined 2.45%, ending the trading session at $29.04. A total volume of 1.28 million shares have exchanged hands. The Company’s stock price skyrocketed 22.17% in the past six months and 63.15% in the previous twelve months. Moreover, the stock rallied 22.69% since the start of the year. The stock is trading at a PE ratio of 45.45 and has a dividend yield of 1.10%. The stock currently has a market cap of $5.25 billion.

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