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Jabil Circuit Wins Across the Board

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Fourth-quarter and top-line beats -- and future looking great, to boot.

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I woke up this morning and my back is absolutely killing me. It feels like I slept on a staircase. I swear I'm about an inch shorter.

Asian stocks ended mixed. The Hang Seng was off 0.28% and the Nikkei closed up 0.33%. However, European stocks were in positive territory earlier this morning. And here in the US, we're currently trading higher.

Here's what I'm seeing this morning:

Jabil Circuit (JBL):
Excluding items, the electronics company put up $0.16 a share in its fourth quarter, which thumped the $0.08 the Street was looking for in the period.

To boot, it beat on the top line as well, and it painted a nice picture for the first quarter. More specifically, in the release it said: "Jabil indicated that it expects its core earnings per share for its first quarter of fiscal 2010 to range from $0.24 to $0.32 per diluted share."

That certainly catches my eye, given the Street was at just $0.18.

Some thoughts:

1. It was clearly a great beat and the first-quarter outlook takes the cake. I think there's going to be a lot of chatter about these results early in the session and there could be a good trade here today, too.

2. I also sense that the sell side will be upping their estimates over the next few days. If I'm right, that would get it some attention and possibly give the stock a goose as well.

3. I think there's a shot for a new high in the near-term, too.

The only thing that's giving me pause is the fact that the shares have had one awesome run this year, and once the hubbub dies down, there could be some profit-taking. It also trades at more than 22.3 times this year's estimate as I write this, which isn't its best feature.

Micron
(MU):
The memory-chip company lost a dime a share in its fourth quarter. That's a country mile better than the $0.19 loss the Street had been expecting. It exceeded expectations on the revenue line, too.

1. I wouldn't rule out a new 52-week high in the short term. But if it does punch through, it will do so without me.

2. I don't want to buy shares solely on the company's reputation and what could be down the line. The loss that's expected in 2010 is enough to keep me away. I want to see some profits first, then I might chip in (get it?).
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No positions in stocks mentioned.

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