[ACCESSWIRE]
Upcoming AWS Coverage on Plexus Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 28, 2017 / Active Wall St. announces its post-earnings coverage on Jabil Circuit, Inc. (NYSE: JBL). The Company released its second quarter fiscal 2017 financial results on March 15, 2017. The Apple Inc. supplier's revenue increased 1% on a y-o-y basis. Register with us now for your free membership at:
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One of Jabil Circuit's competitors within the Printed Circuit Boards space, Plexus Corp. (NASDAQ: PLXS), is estimated to report earnings on April 19, 2017. AWS will be initiating a research report on Plexus in the coming days.
Today, AWS is promoting its earnings coverage on JBL; touching on PLXS Get our free coverage by signing up to:
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Earnings Reviewed
For the quarter ended February 28, 2017, Jabil's revenue was $4.45 billion, a growth of 1% compared to revenues of $4.40 billion in Q2 FY16. The Company's reported numbers topped analysts' consensus of $4.37 billion.
For the reported quarter, Jabil posted net income of $20.7 million. On a per-share basis, the St Petersburg, Florida headquartered Company recorded earnings of $0.11 per share. The Company's Core operating income, excluding the amortization of intangibles, stock-based compensation and restructuring charges, was $152 million. Core diluted earnings per share were $0.48. The Company's earnings result surpassed Wall Street's expectations of $0.45 per share.
Segment Details
For Q2 FY17, Jabil's revenue from Diversified Manufacturing Services segment was $1.8 billion, up 1% on a y-o-y basis, and represented 40% of total the Company's revenue. Operating income for the quarter was 3.1%. The segment's revenues exceeded the Company's previous guidance, as it witnessed strong y-o-y performance from healthcare, packaging and consumer lifestyle sectors.
During Q2 FY17, Jabil's Electronics Manufacturing Services segment revenue totaled $2.7 billion, also increasing 1% on a y-o-y basis, and this represented 60% of total Company revenue. Operating income for the segment was 3.7%, an improvement of 50 basis points on a y-o-y basis.
Balance Sheet & Cash Flow
Jabil ended Q2 FY17 with cash balances of $755 million, while net capital expenditures for the reported quarter totaled $139 million. For year-to-date, net capital expenditures totaled $302 million. Jabil stated that it remains well positioned to deliver annual cash flows from operations of at least $1 billion, and free cash flows of at least $450 million. The core return on invested capital for Q2 FY17 was 13.1%.
Jabil also noted that its plans to return 40% of cash flows from operations via dividend and share repurchases to a maximum of $1 billion. Till the press release's date, the Company has returned approximately $291 million in dividends and share repurchases under this framework. As at the end of the February quarter, Jabil has utilized $245 million of this authorization, repurchasing some 11.8 million shares at an average price of $20.71.
Outlook
For Q3 FY17, Jabil's Diversified Manufacturing Services segment is expected to grow 9% on a y-o-y basis to $1.6 billion. The Electronics Manufacturing Services segment is estimated to decline 1% on a y-o-y basis with revenues of $2.8 billion. Jabil expects Q3 FY17 total Company revenue to be in the range of $4.25 billion to $4.55 billion, or an increase of 2% at the midpoint of the range on a y-o-y basis.
For Q3 FY17, core operating income is estimated to be in the range of $90 million to $130 million. Core operating margin is anticipated to be in the range of 2.1% to 2.9%. Core earnings per share are estimated to be in the range of $0.19 to $0.39 per diluted share.
Stock Performance
On Monday, March 27, 2017, the stock closed the trading session at $28.78, marginally up 0.14% from its previous closing price of $28.74. A total volume of 2.02 million shares have exchanged hands, which was higher than the 3-month average volume of 1.67 million shares. Jabil Circuit's stock price soared 19.95% in the last three months, 32.38% in the past six months, and 54.39% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 21.97%. The stock is trading at a PE ratio of 35.71 and has a dividend yield of 1.11%.
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