Shares of electronic parts manufacturer Jabil Circuit Inc. (NYSE:JBL) have been plunging this morning, despite the firm posting better-than-expected second quarter earnings per share. Hurting the stock this morning is the company's third-quarter guidance, which came in well below analysts' predictions.Jabil Circuit reported yesterday evening a second-quarter loss of $24 million or 12 cents per share, hurt by restructuring charges. Excluding costs related to restructuring and impairment, Jabil's earnings number would have come at 20 cents per share. Analysts' forecast (which typically exclude one time items) was for 13 cents per share in the quarter.
The company posted a 4% rise in its second-quarter revenue to $3.1 billion, up from $2.9 billion a year earlier. Analysts, on average, expected Jabil Circuit show revenue of $3.05 billion in the quarter, according to FactSet Research.
Looking ahead, Jabil showed pessimism over its future earnings. The company warned it expects third-quarter earnings results below analysts' estimates, blaming the slowdown in the U.S. economy. Jabil forecast adjusted profit in a range between 18 cents per share and 22 cents per share on sales between $3.05 billion and $3.15 billion. This comes well below analysts' predictions for third-quarter profit of 34 cents per share, on revenue of $3.25 billion.
Traders have expressed their disappointment over Jabil's outlook, pushing the stock down over 15% in early morning trading.
Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.
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