Electronics manufacturer and Apple supplier Jabil, Inc. (NYSE: JBL – $30.96) reported second quarter earnings of $0.66 per share, better than the analyst consensus of $0.62, and up from $0.48 per share last year. Revenue rose to $5.3 billion, ahead of the Street view of $4.91 billion, and a 19.2% increase over the $4.44 billion posted in the year ago quarter. Revenue from Jabil’s diversified manufacturing services business, which includes components supplied to Apple, Go Pro and Cisco, rose 38% in the second quarter and revenue from electronics manufacturing services rose 7%. For the third period, Jabil is targeting revenue in the range of $4.75 to $5.05 billion, straddling the Street view of $4.81 billion and earnings in the range of $0.35 to $0.55 per share, vs. expectations of $0.45 per share.
The shares are higher by about 9% in today’s trading and, given the new guidance, the shares remain reasonably valued at 12 times anticipated full-year earnings. St. Petersburg, Florida-based Jabil also provides investors with a $0.08 per share quarterly dividend yielding about 1%. The shares can continue to be held for now.