cut third-quarter earnings guidance, citing operational issues in its electromechanical division and at production and repair facilities in the Americas.
Jabil expects to post core earnings, which exclude items like amortization and stock-based compensation, of 33 cents to 37 cents a share in the quarter, down from previous guidance of 43 cents a share. It maintained its previously issued revenue guidance of $2.5 billion to $2.6 billion.
Analysts surveyed by Thomson First Call were expecting core earnings of 43 cents a share on revenue of $2.56 billion in Jabil's third quarter, which ended last month.
"The shortfall in earnings vs. previous guidance was driven primarily by operational issues within the company's electromechanical operations and with certain production and repair facilities in the Americas region," the company said.
"We are disappointed with our financial performance in the third fiscal quarter of 2006 and are committed to improving our operational and financial performance," it said. "Despite these short-term challenges, we are optimistic about the future. Revenues continue to show strong growth and we continue to expect core earnings for the quarter and for the year to exceed prior-year levels."
The stock closed at $32 42 on Monday. In premarket trading Tuesday, it lost 73 cents, or 2.3%, to $31.69.