Upcoming AWS Coverage on IEC Electronics Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 22, 2016 / Active Wall St. announces its post-earnings coverage on Jabil Circuit, Inc. (NYSE: JBL). The Company posted its first quarter fiscal 2017 financial results on December 16, 2016. The contract electronics manufacturing giant posted earnings and revenue numbers that surpassed market expectations. The Company also provided outlook for Q2 FY17 in-line with estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Jabil Circuit's competitors within the Printed Circuit Boards space, IEC Electronics Corp. (NYSE: IEC), reported on December 14, 2016, its results for the fiscal year ended September 30, 2016. AWS will be initiating a research report on IEC Electronics in the coming days.

Today, AWS is promoting its earnings coverage on JBL; touching on IEC. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=JBL

http://www.activewallst.com/registration-3/?symbol=IEC

Earnings Reviewed

For the three months ended December 02nd 2016, Jabil Circuit reported net revenue of $5.1 billion, a decrease of 2% on a y-o-y basis, topping Wall Street's forecasts of $4.93 billion.

For Q1 FY17, Jabil Circuit's GAAP operating income was $166 million, while GAAP net income was $88 million. GAAP net diluted earnings per share were $0.47 for the reported quarter. Core operating income, excluding the amortization of intangibles, stock-based compensation, and restructuring charges was $210 million, and represented 4.1% of revenue. For Q1 FY17, Jabil Circuit's Core diluted earnings per share were $0.69, which was below the $0.85 core earnings per share reported in the year earlier same period. The core earnings numbers outperformed analysts' expectations for $0.64 per share.

"I'm really pleased with our strong first quarter results," said CEO Mark Mondello.

"In particular, we saw strength in our healthcare, packaging and consumer lifestyles businesses within our DMS segment, combined with yet another solid quarter of execution from our EMS segment, allowing us to deliver excellent results," he added.

Segment Results

During Q1 FY17, Jabil Circuit's revenue for its diversified manufacturing services segment was $2.4 billion, a reduction of 3% on a y-o-y basis, and represented 47% of the Company's total revenue. Operating income for the segment was 5%. The segment's revenue exceeded the Company's previous guidance.

For Q1 FY17, Jabil Circuit's electronics manufacturing services segment generated revenue of $2.7 billion, down 1% on a y-o-y basis, and in-line with expectations. This represented 53% of overall revenues, and the core operating income for this segment was 3.3%.

Balance Sheet

Jabil Circuit ended the quarter with cash balances of $747 million. The Company's net capital expenditures for the Q1 FY17 totaled $162 million. The Company's Q1 FY17 cash flows from operations totaled $152 million. The core return on invested capital was 17.6% in Q1 FY17.

To date, the Company has returned some $239 million in dividends and share repurchases under this framework. Of Jabil Circuit's current authorization to repurchase $400 million of shares, and as of the end of the November quarter, the Company has utilized $208 million of this authorization, repurchasing some 10.2 million shares, $114 million, or 5.3 million shares, within the November quarter.

Outlook

For Q2 FY17, Jabil Circuit expects revenue to be in the range of $4.2 billion to $4.5 billion, or a decline of 1% at the midpoint of the range. The Company's core operating income is estimated to be in the range of $125 million to $165 million, and core operating margin in the range of 3% to 3.7%. Core earnings per share are estimated to be in the range of $0.35 to $0.57 per diluted share, and GAAP earnings per share are expected to be in the range of a loss of $0.18 to income of $0.18 per diluted share. Analysts were expecting revenue of $4.36 billion and core earnings of $0.46 per share.

Stock Performance

At the closing bell, on Wednesday, December 21, 2016, Jabil Circuit's stock slightly dropped 0.78%, ending the trading session at $24.20. A total volume of 1.75 million shares were traded at the end of the day. In the last month and previous six months, shares of the company have rallied 18.45% and 22.54%, respectively. Moreover, the stock gained 5.62% since the start of the year. The stock is trading at a PE ratio of 18.39 and has a dividend yield of 1.32%.

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SOURCE: Active Wall Street