NEW YORK (TheStreet) -- Shares of Jabil Circuit (JBL) - Get Jabil Inc. Report are dropping 8.6% to $20.08 in after-hours trading on Wednesday after the St. Petersburg, FL-based company posted its 2016 second quarter results.
After today's closing bell, the electronic manufacturing services provider posted core earnings of 57 cents per diluted share, missing analysts' expectations of 60 cents per share.
Revenue increased 2% to $4.4 billion year-over-year, but fell short of Wall Street's projections of $4.5 billion.
"I'm pleased to report second quarter results that were largely in line with our guidance and expectations," CEO Mark Mondello said in a statement this afternoon.
"The performance of our EMS (Electronics Manufacturing Services) segment was outstanding and above expectations, while our DMS segment grew modestly as we faced a slight downturn in product demand late in our fiscal quarter specific to our mobility business," he added.
For the third quarter, Jabil forecasts core earnings per diluted share between 12 cents and 18 cents on revenue of $4.1 billion to $4.3 billion, which did not meet analysts' expectations.
Analysts are looking for earnings of 51 cents per share on revenue of $4.75 billion.
The outlook reflects "reduced demand in mobility," Mondello noted.
About 3.1 million of the company's shares were traded today vs. its average volume of 2.12 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
This is driven by multiple strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels, impressive record of earnings per share growth and compelling growth in net income.
The team believes its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: JBL"