This chipmaker’s strong results may mean bullish things for Apple

JBL Pulse
Source: JBL

Cowen is bullish on Apple after its supplier Jabil Circuit released better-than-expected fiscal second-quarter results.

The chipmaker on Wednesday posted diluted earnings of 48 cents per share on revenue of $4.4 billion, beating analysts expectations for earnings of 46 cents per share on revenue of $4.37 billion.

"Most importantly, a bullish outlook for JBL's August Q is highly supportive of our long-held view that a super-cycle is brewing for this iPhone launch (especially in China)," Cowen analyst Timothy Arcuri said in a note on Thursday. Cowen maintained its outperform rating on the iPhone maker.

Jabil released its outlook for the fiscal third quarter, expecting revenue to hit between $4.25 billion and $4.55 billion. A consensus of analysts polled by Thomson Reuters expected guidance of $4.40 billion.

Apple made up 24 percent of Jabil's sales in 2016, Arcuri noted. Apple is also set to release its 10th anniversary iPhone this fall.