NEW YORK (TheStreet) -- Jabil Circuit (JBL) shares are up 1.8% to $20.46 on Thursday after the company posted narrower than expected losses during the third quarter earnings period.
The contract electronics supplier reported revenue of $3.8 billion, beating analysts expectations of $3.6 billion, while also reporting a net loss of 6 cents per share, beating analysts expectations of a net loss of 9 cents per share for the quarter.
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Despite the earnings beat, analysts at Citigroup (C) are skeptical of the company's full year guidance due to one of its main contractor's -- Apple (AAPL) -- plan to diversify its supplier base.
The firm raised the company's price target to $16.50 from $15 while also maintaining its "sell" rating on the stock.
TheStreet Ratings team rates JABIL CIRCUIT INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate JABIL CIRCUIT INC (JBL) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."