Why Shares of Jabil Circuit Popped Today

By Timothy GreenMarketsFool.com

Image source: Jabil Circuit.

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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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Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.