Jabil Circuit, Inc. (JBL) has reported a 73.82 percent plunge in profit for the quarter ended Feb. 28, 2017. The company has earned $20.66 million, or $0.11 a share in the quarter, compared with $78.93 million, or $0.41 a share for the same period last year. On the other hand, adjusted core net income for the quarter stood at $88.78 million, or $0.48 a share compared with $109.34 million or $0.57 a share, a year ago.
Revenue during the quarter went up marginally by 0.95 percent to $4,445.64 million from $4,403.59 million in the previous year period. Gross margin for the quarter contracted 93 basis points over the previous year period to 8.14 percent. Total expenses were 98.13 percent of quarterly revenues, up from 96.48 percent for the same period last year. That has resulted in a contraction of 165 basis points in operating margin to 1.87 percent.
Operating income for the quarter was $83.18 million, compared with $154.93 million in the previous year period.
However, the adjusted core operating income for the quarter stood at $152.19 million compared to $186.33 million in the prior year period. At the same time, adjusted operating margin contracted 81 basis points in the quarter to 3.42 percent from 4.23 percent in the last year period.
"The performance of our team during the second quarter was exceptional with nearly all of our businesses delivering at or above plan," said chief executive officer Mark Mondello. "I believe our results reflect the effectiveness of our strategy to increase the quality and diversification of our cash flows and earnings," he added.
For the third-quarter 2017, Jabil Circuit, Inc. forecasts revenue to be in the range of $4,250 million to $4,550 million. The company forecasts adjusted core operating income to be in the range of $90 million to $130 million. It expects diluted loss per share to be in the range of $0.34 to $0.03. On an adjusted basis, the company expects core diluted earnings per share to be in the range of $0.19 to $0.39.
Operating cash flow improves significantly
Jabil Circuit, Inc. has generated cash of $346.20 million from operating activities during the first half, up 376.48 percent or $273.54 million, when compared with the last year period. The company has spent $308.33 million cash to meet investing activities during the first six months as against cash outgo of $689.25 million in the last year period. It has incurred net capital expenditure of $301.71 million on net basis during the first six months, down 32.78 percent or $147.12 million from year ago period.
The company has spent $201.41 million cash to carry out financing activities during the first six months as against cash inflow of $590.68 million in the last year period.
Cash and cash equivalents stood at stood at $755.10 million as at Feb. 28, 2017.
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