Jabil Circuit (JBL) , a key Apple (AAPL) supplier, reported stronger-than-expected third quarter financial results Wednesday afternoon, which Cowen analyst Timothy Arcuri believes to be a positive read-through for Apple.

Arcuri reiterated his "Outperform" rating on the tech titan's stock with a $160 price target, arguing that Jabil's third quarter commentary "indicates no glaring issues for the iPhone launch."

Jabil's strengthening Diversified Manufacturing Services (DMS) segment, of which Apple embodies 60% of revenue, supports his view that things are going just fine for Apple for this quarter and next.

"JBL's AugQ guide for DMS of +26% Y/Y (+22% Q/ Q) and implied outlook for mobility to us supports a constructive view for iPhone units in AAPL's SeptQ," he noted.

"Our own field work suggests total iPhone supply for CQ2 remains unchanged at ~43MM units. We model sell-in of ~41.5MM (up slightly Y/Y) and sell-through could be flat to just down slightly even considering the huge ~4MM unit channel inventory draw-down in CQ2:16," he continued.

Jabil's shares fell 3% to $29.70 on Thursday in early afternoon trading. Apple's stock prices was down 1.4% to $143.16.

What's Hot on TheStreet

Beware Tesla fanboys: Tesla (TSLA) burning money, but shareholders are the likely ones to blister and feel the pain. The standard 90-day corporate equity lockup period for Tesla, following its $402.5 million stock sale of March 16, ends Thursday TheStreet reports. As a result, Tesla will be free to conduct another stock offering as soon as Thursday, which is a real possibility given the electric car company's debt situation, partly due to its Solar City investment, and need for additional cash. Any new issuance the company may seek would likely need to take place before July, which is when Tesla issues its quarterly report on car sales. Alternatively, an offering could come in late August after Tesla issues its quarterly financial report.

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