Shares of Jabil Circuit (JBL) opened nearly 9% lower on Wednesday a day after the electrical components company reported disappointing quarterly earnings.
The St. Petersburg, Fla.-based company was met with a slew of bearish notes by analysts this morning as they continued to digest a worse-than-expected decline in fourth-quarter net income.
While revenue for the three-month period ticked higher to $4.34 billion from $4.28 billion a year ago, rising costs weighed on Jabil Circuit’s bottom line.
“Demand remained weak in most of our business segments,” Jabil CEO Timothy Main said in a statement released with the company’s earnings late Tuesday. On top of that, earnings were weighed down by high overhead costs that weakened margins.
Analysts responded with a slew of less-than-favorable notes on the company’s stock price on Wednesday, with UBS (UBS) cutting its price target on Jabil to $25 from $27 and Stifel (SF) cutting its target to $26 from $29, both on “buy” ratings.
Raymond James (RJF) lowered its outlook on Jabil’s stock by two dollars to $26, but maintained its “strong buy” rating.
Jabil’s shares fell nearly 9% to $19.09 on Wednesday, pushing them down some 3% since January.