Citi Previews JBL, SMOD Earnings

Jabil JBL reports February results on Tuesday, March 22nd after the market close and SMART Modular SMOD reports earnings on Thursday, March 24th after the market close, Citi reports. “We believe Jabil will report sales at the high end of guidance & EPS inline with guidance based on continued momentum in the company's Diversified Manufacturing Services segment,” Citi writes. “For SMART Modular, we believe there is increased risk to the quarter given DRAM prices fell ~30% from the beginning of December through the end of February. SMART has stated they can maintain margins in a normal environment with DRAM price declines of -5% m/m or -15% q/q. “However, we note DRAM prices have stabilized in the last two months & Citi's semiconductor analyst has identified a positive inflection point for memory pricing & believes this is a potential positive for SMOD's outlook.” Jabil closed Friday at $18.59; SMART closed Friday at $6.62.