Shares for Jabil Circuit. Inc. (JBL) fell as much as 6.9% in premarket trading and are up just 0.04% minutes after the market opened on Thursday. The company reported their fiscal fourth quarter profit on Wednesday, with the company posting a drop in profit.
Profits in the fourth quarter fell to $38.1 million compared to $87.7 million during the same period a year prior.
Jabil’s EPS was $0.20 compared to $0.45 during the same quarter a year prior. The company’s profit, when excluding one-time costs, was $52.9 million with an EPS of $0.28. The consensus was that the company would post an EPS of $0.25 a share.
Revenues are also on the decline for JBL.
The company’s revenue fell from $4.68 billion a year ago to $4.43 billion. Revenues did beat expectations of revenue at $4.27 billion. JBL will be entering their fiscal 2017 year. The company was upbeat about their 2016 earnings, stating that there were significant variabilities in the market.
Guidance for 2017 surpasses analyst estimates, with the company expecting to post an EPS of $0.54 – $0.74 in the first-quarter of the fiscal year. The company also expects revenues between $4.8 billion and $5.0 billion on the quarter.
Jabil’s report also announced that the company will undergo an alignment plan. The restructuring alignment plan is expected to cost the company $195 million over a two-year period.
The majority of the costs, $120 million to $150 million, will be accrued during the 2017 fiscal year.
Net revenue in the company’s 2017 guidance is expected to decrease 6% year-on-year. JBL’s diversified manufacturing services is expected to take a 12% hit on net revenue, while the company’s electronics manufacturing services is slated to remain consistent on the year.
Core operating income during fiscal Q1 2017 is expected to be between $175 million and $225 million.
