Jabil Circuit, an important contract manufacturer for Apple, said it expects its best-ever August-ending quarter, after meeting May’s financial expectations, and that the business will continue to grow in 2018.
Shares of contract electronics manufacturer Jabil Circuit (JBL), an important supplier to Apple (AAPL), are up $1.59, or 5%, at $32.22, in late trading, after the company this afternoon reported fiscal Q3 revenue and profit higher than analysts had been expecting, and also topped consensus with its outlook for this quarter’s revenue.
Jabil’s CEO, Mark Mondello, said he was “pleased” with the results.
Revenue in the three months ended in May rose by 4%, year over year, to $4.49 billion, yielding EPS of 31 cents, excluding some costs.
Analysts had been modeling $4.4 billion and 29 cents per share profit.
Mondello noted that the company’s “diversified manufacturing services” division “delivered exceptional execution and cost controls against product road maps exhibiting massive scale and complexity,” helped by “strong double-digit growth in healthcare and packaging.”
The “electronics manufacturing services” business did “an excellent job building broad revenue diversification, while developing end-market domain expertise, resulting in solid margin expansion.”
For the current quarter, the company forecast revenue in a range of $4.7 billion to $5.10 billion, easily toping the average estimate for $4.79 billion. Profit is seen in a range of 50 cents to 74 cents, slightly below consensus of 61 cents.
Mondell said this quarter will be “the best fourth quarter in the company’s history in terms of core operating income.”
For next year, the company sees profit of $2.60 per share, which is well above consensus for $2.42 per share.
Mondello said that both parts of the company, “diversified” and “EMS,” will see growth in 2018.