Why Shares of Jabil Circuit Popped Today

Image source: Jabil Circuit.

What happened

Shares of electronic manufacturing services and solutions provider Jabil Circuit (NYSE: JBL) jumped on Friday following the company's fiscal first-quarter report. In addition to beating analyst estimates for both revenue and earnings, Jabil provided guidance that was favorable to analyst expectations. Jabil stock was up about 16% at 10:45 a.m. EST.

So what

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Jabil reported first-quarter revenue of $5.1 billion, down about 2% year over year, but $190 million higher than the average analyst estimate. Revenue from diversified manufacturing, which accounts for 47% of total revenue, slumped 3% year over year, while electronics manufacturing, which accounts for the rest of Jabil's revenue, produced a sales decline of 1%.

Non-GAAP earnings came in at $209.5 million, or $0.69 per share, down from $0.85 per share during the prior-year period, but $0.05 better than analysts were expecting. GAAP EPS was also down significantly, falling to $0.47 from $0.68 during the first quarter of last year.

Jabil CEO Mark Mondello added some color to the company's results:

Now what

Jabil expects to produce revenue in the range of $4.2 billion to $4.5 billion during the second quarter, compared to analyst expectations of $4.36 billion. Non-GAAP EPS is expected to be between $0.35 and $0.57, with the average analyst estimate of $0.46 splitting that range right down the middle.

While Jabil expects revenue to decline during the second quarter, Mondello is focused on the long term:

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