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Revenue Climbs, Profit Falls at Jabil

But the company's core earnings beat Wall Street's estimates.
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Jabil Circuit

(JBL) - Get Jabil Inc. Report

, an electronics manufacturing services provider, said third-quarter revenue rose from the same period a year ago, but net income fell.

Revenue rose 43.3% to $1.2 billion from $850 million in the same quarter last year. The company earned $4.5 million, or 2 cents a share, compared with $20.8 million, or 10 cents a share last year, when calculated according to generally accepted accounting principles.

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Third-quarter core earnings rose to $38.2 million, or 19 cents a share, from $24.4 million, or 12 cents a share, for the same period in fiscal 2002.

Jabil defines core earnings as GAAP net income before the amortization of intangibles, acquisition-related charges, restructuring and impairment costs and other income. Analysts polled by Thomson First Call were expecting earnings of 18 cents.

For the fourth quarter, Jabil is calling for revenue to increase sequentially 3% to 7%, reaching $1.25 billion to $1.3 billion. Jabil expects core operating income to increase sequentially 5% to 10%, resulting in core earnings of 19 cents to 21 cents a share. GAAP profits are estimated to be 10 cents to 12 cents.

The company also said its restructuring program is on track and it plans to record $88 million in charges for fiscal 2003, including a $12 million charge in the fiscal fourth quarter.

Analysts are looking for a profit of 20 cents in the fourth quarter and 70 cents for the year. The consensus revenue forecast is $1.29 billion for the quarter and $4.72 billion for the company's fiscal year.