Jabil Circuit, Inc. (NYSE:JBL) Continues To Disappoint Its Investors


Dallas, Texas 01/08/2014 (FINANCIALSTRENDS) – Jabil Circuit, Inc. (NYSE:JBL), the Florida based $3.38 billion market capped specialized printed circuit board maker has been under presser at the stock market for an extended period of time. The firm is structured around three major segments of “Diversified Manufacturing Services (DMS), Enterprise & Infrastructure (E&I) and High Velocity Systems (HVS).”

Over the trailing 12 months, Jabil Circuit, Inc. (NYSE:JBL) has managed to post net income of $383 million and has generated net sales of $18.31 billion in the same period. Its sales have seen to be dipping sequentially on a quarter on quarter basis with flat sales growth reported for the most recent quarter for which results were announced in December 2013.

The losses sustained by the investors of this firm at the markets, have extended to a huge 24 percent in the past one quarter. Even in the past one month the company stock shed close to 18.9 percent. When trading ended on January 7, the stock of Jabil Circuit, Inc. (NYSE:JBL) was trading at $16.62 per share which translates into a 31.4 percent dip over its prior 52 week high price points.

Analysts and rating agencies seem to be losing patience while the management of Jabil Circuit, Inc. (NYSE:JBL) struggle to get its act together on returning share holder value back to its investors. One of these analysts, who have come out questioning the firm’s strategy, is Brain Alexander from Raymond James agency.  He has gone to discredit the approach taken by the firm with respect to its relationship with key customers like BlackBerry (NASDAQ:BBRY) which has suffered due to lack of demand for its products and with Apple Inc. (NASDAQ:AAPL) which is one of the largest customer of Jabil Circuit, Inc. (NYSE:JBL). He has also doubted the advisability of selling off its most profitable AMS business.