Enter multiple symbols separated by commas

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.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.