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Jabil Circuit Q3 results beat expectations, shares rise

Jabil Circuit
Jim Stern | Bloomberg | Getty Images

Apple supplier Jabil Circuit beat earnings expectations for the fiscal third quarter, reporting earnings of 17 cents per share, excluding items, versus an expected 16 cents per share.

The company also reported a net quarterly revenue of $4.3 billion, above expectations.

The company's stock dipped in the premarket, spurred by weak fiscal fourth quarter guidance. Shares of Jabil ended the day up nearly 2 percent. Jabil said it sees fourth-quarter revenue between $4.15 billion and $4.35 billion.

The company's electronics manufacturing services unit had "near-perfect execution during the quarter," CEO Mark Mondello said in a statement.

"However as expected, our third quarter results also reflected a soft environment within our mobility business," Mondello said. "These challenges will continue to negatively impact our Diversified Manufacturing Services business for the balance of our fiscal year."

Jabil also recently announced a $400 million stock buyback program. Shares of the company are down 19 percent in 2016.

Earlier this month, Goldman Sachs downgraded shares of Jabil Circuit to sell from neutral, and advised investors to avoid the company based on weak iPhone and other customer sales.

Jabil Circuit in 2016