Jabil Circuit Inc. (JBL, Financial), the American global provider of electronic manufacturing services and solutions headquartered in St. Petersburg, Florida, will report its financial results for the third quarter of fiscal 2017 after market close June 14.
For the third quarter, analysts forecast that Jabil Circuit will close the reporting period with an EPS of 29 cents as shown by the picture below. The EPS of 29 cents – as forecasted by analysts – represents an average of 10 analysts’ estimates of Jabil Circuit’s third-quarter 2017 earnings. The estimates range between a low of 26 cents and a high of 31 cents.
Source: Yahoo Finance
The average EPS for the quarter in question also represents a 70.6% upside from one year ago when the company closed the comparable quarter of 2016 with an EPS of 17 cents.
This EPS – as forecasted by analysts – is backed on revenue that is expected to come in at $4.4 billion for the third quarter of fiscal 2017. It ranges between a low of $4.35 billion and a high of $4.45 billion, and it is an average of the estimates of nine analysts who were surveyed on Jabil Circuit’s third-quarter 2017 revenue.
Source: Yahoo Finance
With this average, analysts estimate a 2.10% increase year over year in the 2017 fiscal third quarter revenue of Jabil Circuit.
Jabil Circuit’s cash on hand and securities amounted to $755.1 million or $4.14 per share at the end of the most recent quarter. With a current ratio of 1.06, the electronic products solutions U.S. company can generate the resources necessary to meet its short-term obligations.
When we look at its long-term obligations, we notice that Jabil Circuit has long-term debt of approximately $2.06 billion – as of the second quarter of fiscal 2017 – which leads to long-term debt to equity (MRQ) of 85.25 versus an industry average ratio of 15.97 according to Reuters.
The interest coverage ratio is 5.46. It is much lower than that one of its peers – the industry average ratio is 15.97 – but when the interest coverage ratio is above 1.5 (this value is usually considered as a gold standard by analysts) it signals that a company doesn’t have problems in paying the interest expenses on the outstanding debt, even though the latter’s amount is significant in the case of Jabil Circuit.
The company can easily generate an annual cash flow figure of $1 billion from its operations for its business’ needs.
Jabil Circuit is trading at $30.84, down 20 cents or minus 0.64% from the previous trading day when a volume of 1,809,987 traded on the New York Stock Exchange versus an average volume of 1.48 million shares traded over the last 10 trading days and an average volume of 1.97 million shares traded on the NYSE over the last three trading months.
The company has 182.29 million shares outstanding for a market capitalization of $5.62 billion. Approximately 173.81 million shares of the total outstanding volume are the float. The percentage of shares outstanding held by insiders is 8.71% and held by institutions is 99%. The price-earnings (P/E) ratio is 38.45, the price-book (P/B) ratio is 2.33, the price-sales (P/S) ratio is 0.31, and the EV to EBITDA ratio is 6.09.
The company distributes an annual dividend of 32 cents through quarterly payments of 8 cents for a dividend yield of 1.03%.
Disclosure: I have no positions in Jabil Circuit.
