Jabil Circuit (JBL) Stock | Showing Strength

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Jabil Circuit, Inc.  (NYSE: JBL)

 

Jabil Circuit, Inc. (JBL), on Thursday announced positive unaudited financial results for the fourth quarter and full fiscal year, which ended August 31, 2015.

 

Jabil Circuit, Inc. Earnings Outlook

Jabil Circuit reported earnings of 53 cents per share for the most recent quarter, up from 5 cents per share for the year ago period.  The company’s net revenue increased to $4.7 billion, from $4.1 billion for the 2014 fourth quarter.”  The Street

 

Jabil Circuit, Inc. CEO Comments

“I am extremely pleased with our fiscal 2015 results and in particular the financial strength demonstrated as we exited the year. We exceeded nearly every financial target provided at the outset of the year, culminating with core earnings per share of $2.07 and free cash flow of approximately $300 million,” said Mark T. Mondello, Chief Executive Officer. “Our strong cash generation provided us the financial flexibility to complete a number of strategic acquisitions, aggressively re-invest in the business and return approximately $150 million to shareholders via dividend and share repurchases,” he added.  Business Wire

 

JBL Technical Analysis

JBL

JBL gapped up in price on Friday to $21.35, up from the prior day’s close of $19.50, which is a 9% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was back on June 29th when it closed at $21.37.  Two weeks prior to that date on June 16th, the stock was trading at $22.60. That is when it started its downward trend falling all the way to lows of $17.66 on August 25th. That drop was equivalent to 22% in the span of a little over a month. With Friday’s move up, the stock is attempting to recoup the losses during the move down.  The stock is trading on 2.5 times the normal daily trading volume. An interesting level for the stock is $24 on both the 1 year and 5 year charts. This seems to be the high end of the range for the stock. For trading purposes, my entry point would have been $21.50 looking for a run through $22. My stop loss would have been $21.25, fearing anything below that and the stock would start to fill in the gap up.

 

Company Profile

Jabil Circuit, Inc., together with its subsidiaries, provides electronic manufacturing services and solutions worldwide. It offers electronics design, production, and product management services to companies in the aerospace, automotive, computing, defense, digital home, energy, healthcare, industrial, instrumentation, lifestyles, mobility, mold, networking, packaging, peripherals, storage, telecommunications, and wearable technology industries. The company’s services include integrated design and engineering; component selection, sourcing, and procurement; automated assembly; design and implementation of product testing; parallel global production; enclosure services; systems assembly, direct order fulfillment, and configure-to-order; and injection molding, metal, plastics, precision machining, and automation services. It also provides mobility, display, set-top boxes, and peripheral products, such as printers and point of sale terminals. Jabil Circuit, Inc. was founded in 1966 and is headquartered in St. Petersburg, Florida.  Yahoo Finance

 

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