Jabil Circuit Shares Fall On Disappointing Forecast
Shares of electronics contract manufacturer Jabil Circuit fell more than 10% on Friday after the contract electronics manufacturer's earnings forecast was below market expectations and brokerages cut their ratings.
Jabil reported a 27% rise in second-quarter revenue but said restructuring costs meant third-quarter per-share earnings would be between a loss of 8 cents and a profit of 4 cents.
The outlook was well below the 39-cent-a-share profit that was the average of six forecasts on Reuters Estimates.
Jabil also said third-quarter revenue would be between $2.9 billion and $3 billion, below the $3.04 billion average analyst estimate.
Jabil shares fell $2.65, or 10.6%, to $22.28 as several brokerages downgraded their ratings and price targets on the company.
Jefferies & Company analyst Brian White said the profit outlook was "the ugliest we have seen in recent memory" and lowered his price target to $22.50 from a previous $24.50.
"The weak profit outlook by Jabil is quite extraordinary and largely the result of the need to reconfigure its consumer electronics business to adapt to a world of more intense pricing pressure, in our view," he said in a report.