Jabil Profit Tops Estimates, Details Weak Outlook; Stock Down

(RTTNews) - Contract electronics manufacturer Jabil Circuit Inc. (JBL), Wednesday reported a better-than-expected fourth-quarter profit, helped by an income tax benefit. While revenue increased and topped expectations, it was offset by restructuring charges.

Jabil detailed some weak earnings and revenue outlook for the first quarter, denoting the struggles faced by its customers such as smartphone maker BlackBerry.

The tepid guidance upset investors and Jabil shares dropped a near 5 percent in after-hours trade on the New York Stock Exchange.

Jabil, based in St. Petersburg, Florida, posted fourth-quarter quarterly net income of $127 million or $0.61 per share, compared with $83 million or $0.39 per share last year.

Results for the quarter include restructuring charges of $59 million, an income tax benefit of $70 million related to acquisition costs and purchase accounting adjustments.

Excluding items, adjusted earnings for the quarter were $117 million or $0.56 per share, compared with $113 million or $0.54 per share a year ago.

On average, 11 analysts polled by Thomson Reuters expected earnings of $0.54 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter climbed to $4.8 billion from $4.3 billion in the prior year. Analysts estimated revenue of $4.51 billion for the quarter.

Looking into the first quarter, Jabil expect earnings in the range of $0.25 to $0.35 per share, core earnings of $0.50 to $0.60 per share and revenue of $4.35 billion to $4.65 billion. Analysts estimate earnings of $0.63 per share on revenue of $4.84 billion for the quarter.

Jabil said its restructuring of global operations continued through the fourth quarter and it is estimated that the balance of $99 million will be recorded in fiscal years 2014 and 2015.

The company also said it expects $35 million to $85 million of charges in fiscal year 2014 related to ongoing talks with Blackberry, Jabil's second largest customer in 2013.

In July, Jabil closed its near $665 million acquisition of Nypro Inc. as part of efforts to diversify into consumer electronics and health care industry.

Shares of Jabil closed Wednesday at $24.02, up $0.30 or 1.31%, on a volume of 4.3 million shares. In after hours, the stock slid $1.16 or 4.83% at $22.84. In the last 52-week period, the share trended in a range of $16.39 - $24.32.