WASHINGTON (dpa-AFX) - Contract electronics manufacturer Jabil Circuit Inc. (JBL) said Tuesday after the markets closed that its first quarter profit rose 6% from last year, driven by strength in its diversified manufacturing services and high velocity segments. The company's quarterly earnings per share, excluding items, came in line with analysts' expectations, but its quarter revenue fell short of analysts' forecast.
The st. Petersburg, Florida-based company reported net income for the first quarter of $112.9 million or $0.54 per share, compared to $106.7 million or $0.49 per share for the year-ago quarter.
Excluding items, core earnings for the first quarter were $136.2 million or $0.65 per share, compared to $132.1 million or $0.61 per share in the prior year quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.65 per share for the first quarter. Analysts' estimates typically exclude special items.
Net revenue for the first quarter rose 6% to $4.33 billion from $4.08 billion in the same quarter last year. Twelve analysts had a consensus revenue estimate of $4.41 billion for the first quarter.
First quarter revenue from diversified manufacturing services increased 30% year over year, climbing to 42% of total revenue in the quarter, the company said.
Jabil also said it saw seasonal strength in its high velocity segment during the first quarter, although it declined to 30% of total revenue, reflecting the company's increased emphasis on shifting the mix of its business.
Revenue from enterprise & infrastructure increased 4% from a year earlier, which was lower than expected mainly due to inventory adjustments from specific customers unrelated to weakness in end-market demand. The company expects revenue levels in that segment to increase sequentially in the second quarter.
'Improving business mix and diversification, combined with an emphasis on operational efficiency, enabled Jabil to expand margins and earnings at lower revenue growth rates in a tepid economic environment,' the company said in a statement.
Looking forward to the second quarter, the company forecast net revenue of $4.0 billion to $4.2 billion, net earnings of $0.41 to $0.51 per share and core earnings of $0.52 to $0.62 per share. Analysts currently expect the company to earn $0.60 per share on revenue of $4.24 billion for the second quarter.
'Expectations for the second fiscal quarter of 2012 are consistent with seasonal patterns of demand,' said Jabil CEO Timothy Main. 'Although the economic environment has a number of uncertainties, we are on track to deliver another record year in fiscal 2012.'
Jabil shares, which have traded in a range of $13.94 to $23.09 over the past year, closed Tuesday's regular trading session at $19.95, up 99 cents or 5.22%, but lost 75 cents or 3.76% in after hours trading.
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