AAPL) and Cisco ( CSCO) as very important customers, is without a doubt one of the best brands in the electronics manufacturing service (EMS) business. But the company has been working over the past couple of years to branch out of that business and into what it calls diversified manufacturing service, or DMS. , I pointed out the stock could reach the range of $25 to $27 per share, assuming that Jabil could deliver modest, free-cash-flow growth and 4% to 6% revenue growth. Considering that Jabil was coming off of a very disappointing quarter, my optimism wasn't well received. However, I will admit: It certainly didn't help the company missed third-quarter revenue estimates -- let me just get that out of the way. The fact that management issued lower-than-expected guidance roughly 2% shy of expectations was a 1-2-punch tough to overcome. Even so, since that article shares of Jabil have advanced by as much as 22.5%, reaching a high of $24.32 two weeks ago.
I didn't blame investors for their cynicism after the June quarter. But there was, nonetheless, an exaggeration with June's results. While it's true the company's revenue miss was a letdown, it's also true that, by virtue of Jabil's 5.1% year-over-year revenue increase, Jabil's results were nonetheless within management's prior stated range of $4.3 billion to 4.5 billion. Not to mention, on a sequential basis, revenue inched up 1.1%. Too much was also being made on the less-than-stellar results of the DMS business, which declined 4% year over year. But, as noted, this is a part of the transition management has been working to build. To that end, some struggles are expected. But the company more than made up for this deficit in areas like High Velocity, which jumped 23% year over year and beat prior expectation by 10%. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.