Apple Parts Supplier Jabil Circuit Looks To Extend Earnings Winning Streak

NEW YORK (TheStreet) -- Contract electronics manufacturer Jabil Circuit (JBL), which makes phone casings for Apple's (AAPL) iPhone 6 and other devices, will report third-quarter earnings Wednesday after the closing bell.

Buoyed by the strong global demand for iPhones, which has helped Apple gain global market share in both hardware and its iOS platform, Jabil has been able to beat analysts' average earnings estimates for four consecutive quarters. And in the past three quarters, Jabil, headquartered in St. Petersburg, Fla., has exceeded Wall Street's guidance. So I wouldn't bet on that streak ending Wednesday.

For the quarter that ended May, Jabil is projected to earn 49 cents per share, reversing last year's 6-cent loss, while revenue of $4.46 billion calls for a 17% year-over-year climb. For the full year, ending August, earnings are projected to climb 281% to $2.02 per share, topping last year's earnings of 53 cents. Revenue is projected to be $18 billion, up better than 14%.

All told, what's good for Apple is certain to be a boon for Jabil, as evidenced by the projected 281% surge in full-year earnings. And this has shown in Jabil shares, up 8% in 2015 and 16% just in the last six months.

Like shares of other Apple parts suppliers Avago Technologies (AVGO) (up 40% in 2915) and Skyworks Solutions (SKWS) (up 40% in 2915), Jabil has ridden the coattails of the world's most valuable company. And if you're thinking of taking profits now, think again. Just to be safe, think a third time.

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