Jabil Circuit Shares Jump After 4Q Earnings

NEW YORK (AP) — Signs that electronics parts maker Jabil Circuit Inc. may have put the worst of the recession behind it lifted the company's stock Wednesday.

Shares jumped 92 cents, or 7.6 percent, to $13.20 in morning trading a day after the company's fourth-quarter earnings and revenue, as well as its forecast for the current quarter, topped Wall Street expectations.

In a note to investors, Citi Investment Research analyst Jim Suva called Jabil's results "a positive" for the entire industry, reiterating a "Buy" rating on shares and boosting his price target to $16 from $13.

He added, "Most end markets were above expectations with notable improvements" in medical instruments, networking and telecommunications.

"With improving economic fundamentals, we believe that earnings can approach $1 (per share)" next year, Raymond James analyst Brian Alexander said in a note. On average, analysts expect 73 cents a share, according to a Thomson Reuters survey. He raised his price target to $15 from $8.50 and kept an "Outperform" rating.

Jabil, based in St. Petersburg, Fla., reported an adjusted profit of 16 cents per share late Tuesday on sales of $2.8 billion. Analysts projected a profit of 8 cents per share on sales of $2.66 billion.