Jabil Circuit Inc. (JBL – Analyst Report) reported first-quarter fiscal 2015 earnings (including share-based compensation) of 46 cents per share, which convincingly beat the Zacks Consensus Estimate of 40 cents. However, earnings per share declined significantly from 54 cents reported in the year-ago quarter.
Jabil Circuit Inc, which makes phone casings for Apple Inc. (AAPL – Analyst Report), posted a 4.8% rise in revenues, helped by strong sales of iPhone 6 and iPhone 6 plus.
Shares of Jabil surged 5.58% ($1.12) following the earnings release.
Revenues
Revenues increased 4.8% from the year-ago quarter to $4.55 billion and were slightly above the higher-end of management's guided range of $4.2 to $4.4 billion. Revenues also beat the Zacks Consensus Estimate of $4.32 billion.
Electronics Manufacturing services revenues (58% of revenues) decreased 5% year over year to $2.63 billion. Core operating income for the segment was 2.4% of revenues.
Diversified Manufacturing Services revenues (42% of revenues) increased 21% year over year to $1.92 billion. This year-over-year surge was primarily on account of robust performance of the Green Point business.
Operating Details
Gross margin expanded 70 basis points (bps) on a year-over-year basis to 8.4%, primarily due to a favorable product mix.
Operating expenses as a percentage of revenues increased 110 bps on a year-over-year basis to 5.2%. Selling, general and administrative expense as a percentage of revenues increased 140 bps on a year-over-year basis. However, research and development expense as a percentage of revenues declined 10 bps from the year-ago quarter.
As a result, operating income (including stock-based compensation but excluding all one-time items) declined to $162.6 million from $182.7 million in the year-ago quarter.
Net income (excluding stock-based compensation and all one-time items) was $90.5 million or 46 cents per share compared with net income of $111.6 million or 54 cents per share reported in the year-ago quarter.
