What Jabil earnings say about Apple iPhone sales
Sales at Jabil Circuit Inc. for the third quarter of the company’s fiscal year were below expectations although profit was in line with analysts’ projections for earnings at one of the largest companies in Tampa Bay.
The closely watched financial report is seen as a proxy for Apple (NASDAQ: AAPL), one of Jabil’s biggest customers, because Jabil makes iPhone 6 and iPhone 6 Plus casings.
Jabil (NYSE: JBL), a St. Petersburg-based electronics manufacturing firm, reported revenue for the three months ended May 31 of $4.4 billion, up 15 percent from the same period a year ago. Analysts expected revenue of $4.459 billion, Barrons reported.
“Core operating income” was $160.5 million, or 49 cents a share, exactly what analysts projected. Core earnings don’t include a variety of costs, such as stock-based compensation, restructuring and gains or losses on sales of discontinued operations, but Jabil management considers them a useful measure for evaluating Jabil’s ongoing operations.
Jabil’s net income was $72.2 million, or 37 cents a share.
For the full year of fiscal 2015, revenue is expected to be $17.7 billion to $17.9 billion, and core earnings expected to be $1.95 to $2.06 a share.
“We’re on track to deliver approximately 13 percent revenue growth and $2 in core earnings per share for this fiscal year, all while continuing to invest for future growth — quite an accomplishment when one considers the current macro environment,” Mark Mondello, CEO, said in a statement.
Investors didn’t seem as confident. The stock slipped 6 percent to $22.87 a share in after-hours trading, on what MarketWatch.com called a “weak” revenue outlook. Through Wednesday’s close, Jabil’s stock had risen more than 20% in the past 12 months, MarketWatch said.