WASHINGTON (dpa-AFX) - Jabil Circuit, Inc. (JBL) Tuesday reported a jump in fourth-quarter profit, as revenues grew and as well helped by substantially lower non-operational expenses. Core earnings for the quarter improved from last year and came in ahead of Street estimates. The St. Petersburg, Florida-headquartered company expects growth to continue and provided strong earnings guidance for the first quarter. Jabil shares gained over 6 percent in extended trade, following the report.
For the fourth quarter, Jabil Circuit's net income nearly doubled to $114.3 million from $58.7 million in the year-ago period. Earnings per share rose to $0.52 from $0.27 last year.
Results for the quarter include $16.8 million in stock-based compensation expense, compared with $36.0 million last year. Other one-time items last year totaled about $11.4 million.
Excluding items, core earnings for the quarter were $136.3 million, compared with $112.1 million last year. Core earnings per share rose to $0.62 from $0.52 last year.
On average, 12 analysts polled by Thomson Reuters expected earnings of $0.56 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew to $4.280 billion from $3.860 billion in the year-ago quarter. Eleven Street analysts had a consensus revenue estimate of $4.190 billion for the quarter.
On a non-GAAP basis, core operating income for the quarter rose to $187.2 million from $157.0 million last year.
Jabil generated $828 million in cash flow from operations over the course of the year, and returned $262 million in capital to shareholders via dividend and share-repurchase program.
Jabil said it gained market share, won new customers, and generated more production from existing customer base. Jabil said 'its strength in managing complex products and process technologies on a global scale has been important to exceeding its long-term growth targets in fiscal 2011.'
Looking ahead, GAAP earnings for the first quarter are expected in a range of $0.52 to $0.60 per share, which include $0.02 per share for amortization of intangibles and $0.08 per share for stock-based compensation.
Core earnings for the first quarter are expected from $0.62 to $0.70 per share, while revenues are anticipated in a range of $4.3 billion - $4.5 billion. The Street currently expect earnings of $0.60 per share for the first quarter on revenues of $4.420 billion.
The guidance represents 8 percent growth in year-over-year core earnings as well as revenues based on mid-point of guidance.
Last month, Jabil announced the acquisition of Telmar Network Technology, Inc. The deal is expected to close by November 2011. The financial and other terms of the deal have not been disclosed. Telmar had generated revenues of $145 million in fiscal year 2010.
JBL closed Tuesday's regular trading at $17.38, up $0.65 or 3.89%, on the NYSE. In after-hours, the stock gained $1.14 or 6.56%.
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