WASHINGTON (dpa-AFX) - Contract electronics manufacturer Jabil Circuit Inc (JBL), Wednesday reported a surge in third-quarter profit, helped by gains from sale of discontinued operations even as revenue and margins came under pressure. Excluding items, core loss per share was lower than Wall Street estimates, while revenue topped expectations.
Looking ahead to the fourth quarter, the company detailed a soft outlook, while reiterating its projections for fiscal year 2015.
CEO Mark Mondello said he hopes to witness growth in 2015, expecting momentum in key businesses.
Jabil, based in St. Petersburg, Florida, posted quarterly net earnings of $188 million or $0.93 per share, compared with $50 million or $0.24 per share last year.
Results for the quarter include $238.5 million gains from the sale of discontinued operations.
Excluding items, core loss for the quarter was $0.06 per share, compared with earnings of $0.47 per share a year ago.
On average, 12 analysts polled by Thomson Reuters expected a loss of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the third quarter slid to $3.8 billion from $4.2 billion in the prior year, while analysts estimated revenue of $3.6 billion.
Selling and general expenses for the quarter were higher at $191 million, compared with $147 million a year ago.
For the fourth quarter, Jabil expects core results to range between a loss of $0.10 per share and earnings of $0.10 per share, and revenue of $3.7 billion to $3.9 billion. Analysts currently estimate earnings of $0.02 per share on revenue of $3.78 billion.
For fiscal year 2015, the company still forecast core earnings of $1.65 to $1.95 per share, while analysts currently expect earnings of $1.72 per share.
In April, Jabil completed the sale of its aftermarket services business to iQor Holdings Inc for $725 million subject to certain customary closing adjustments and other items.
Jabil stock closed Wednesday at $20.10, up $0.13 or 0.65%, on a volume of 3 million shares on the NYSE. In after hours, the stock gained $0.30 or 1.49%.
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