WASHINGTON (dpa-AFX) - Contract electronics manufacturer Jabil Circuit Inc (JBL), Wednesday said its third-quarter profit fell from a year ago, despite a 15 percent increase in revenues, citing unfavorable comparison. Excluding items, Jabil's earnings were in line with Wall Street estimates, while revenues missed expectations.
Jabil provided some weak guidance for the fourth quarter and tightened its outlook for the full year 2015.
Investors were disappointed with the lackluster guidance, sending Jabil shares down by about 7 percent in after-hours trade on the New York Stock Exchange.
Jabil, based in St. Petersburg, Florida, posted third-quarter net earnings of $72.2 million or $0.37 per share. This compares with a profit of $188.3 million or $0.93 per share last year, when it recorded gains from discontinued operations of $239.5 million.
Excluding items, core earnings for the quarter were $0.49 per share, compared with a loss of $0.06 per share a year ago.
On average, 11 analysts polled by Thomson Reuters expected earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.
Jabils' revenues for the quarter increased 15 percent to $4.36 billion from $3.79 billion in the prior year. Nine analysts had a consensus revenue estimate of $4.46 billion for the quarter.
Jabils fortunes are linked to the tech sector as it makes products for companies like Apple Inc and Hewlett-Packard Co. Jabil has expanded its operations in Chengdu, China, and recently said it would construct new facilities in Malaysia in the second half of 2016.
For the current quarter, Jabil expects core earnings of $0.40 to $0.50 per share and revenues of $4.45 billion to $4.65 billion. Analysts currently expect earnings of $0.47 per share on revenues of $4.74 billion.
For the fiscal year 2015, Jabil now projects core earnings of $1.95 to $2.05 per share on revenues of $17.7 billion to $17.9 billion. Earlier it expected core earnings of $1.85 to $2.15 per share on . and revenues of $17.5 billion to $18.5 billion.
Analysts currently expect earnings of $2.02 per share on revenues of $18.06 billion for 2015.
Jabil closed Wednesday at $24.33, down $0.26 or 1.06%, on a volume of 2.6 million shares. In after hours, the stock dropped $1.55 or 6.37% at $22.78. In the past year, the shares have traded in the range of $18.03 - $24.95.
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