Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Jabil Circuit Wins Across the Board


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

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.

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?).
< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos