Jabil Swings To Loss

(RTTNews) - Contract electronics manufacturer Jabil Circuit Inc. (JBL) said Wednesday after the markets closed that it swung to a second quarter loss, hurt by lower revenue and restructuring charges.

Core operating earnings per share for the quarter also came in below analysts' expectations as did its quarterly revenue. At the same time, the company forecasts third quarter core results way below analysts' current consensus estimate. However, the company gave an upbeat core earnings forecast for its next fiscal year.

"We completed our second quarter largely as planned, with steady progress on finalizing our previously announced divestiture and winding down our relationship with our second largest customer," said Mark Mondello, Jabil's Chief Executive Officer.

Jabil shares are currently gaining 1.26% in after hours trading after closing the day's regular trading session at $18.26, down 14 cents. The shares trade in a 52-week range of $15.30 to $24.32.

For the second quarter ended February 28, 2015, the St. Petersburg, Florida-based company reported a net loss of $38.7 million or $0.19 per share, compared to net income of $88.5 million or $0.43 per share for the year-ago quarter.

In December, Jabil agreed to sell its aftermarket services business to iQor Holdings, Inc. for $725 million. The deal is expected to close in Jabil's third fiscal quarter of 2014.

Loss from continuing operations for the second quarter was $0.16 per share, compared to income from continuing operations of $0.37 per share in the prior year quarter.

Excluding items, core earnings for the second quarter were $20.3 million or $0.10 per share, compared to $94.0 million or $0.45 per share in the second quarter of last year.

On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.11 per share for the second quarter. Analysts' estimates typically exclude special items.

Net revenue for the second quarter fell 14% to $3.58 billion from $4.17 billion in the same quarter last year. Ten analysts had a consensus revenue estimate of $3.61 billion for the second quarter.

Looking forward to the third quarter, the company forecasts net revenue of $3.5 billion to $3.7 billion and earnings of $0.74 to $1.04 per share. The company expects third quarter core results to range from a loss of $0.20 per share to breakeven per share.

Analysts currently expect the company to earn $0.18 per share on revenue of $3.67 billion for the third quarter.

For the fiscal year 2015, the company forecasts core earnings of $1.65 to $1.95 per share. Analysts currently expect the company to earn $1.63 per share.