Jabil Circuit, Inc - Aggressive Growth

Jabil Circuit, Inc (JBL) shares spiked on the recent earnings surprise, but you can still get in at a good price.

A rush of upward revisions have increase the growth rates and pushed shares to a Zacks #1 Rank (Strong Buy).

Company Description

Jabil Circuit provides comprehensive electronics design, manufacturing and product management to electronic and tech companies. The company operates from its facilities in 22 countries.

Revenue Spikes 32%

On Dec 20 Jabil announced first-quarter fiscal 2011 revenue of $4.1 billion, which was up from $3.1 billion a year ago. Analysts were expecting just under $4.0 billion, giving the company the all-important top-line surprise.

The bottom line was also better than expected though. Earnings per share came in at 52 cents, beating the Zacks Consensus Estimate by a nickel. While Jabil has missed twice in the past 4 quarters, those are the only 2 misses since early 2007.

Record Setting Year?

In the same press release, the company said it is on pace for a record year in fiscal 2011 and sees strong growth in each of its business segments.

Analysts liked what they heard and quickly raised full-year forecasts. Projections for the current year are now averaging $1.96, up 25 cents. Next year Wall Street expects EPS to be $2.28, which is up 26 cents since the earnings surprise.

If Jabil can hit those marks, growth rates will be 87% and 16%, respectively. Although, with the current earnings momentum those rates will likely increase over the coming quarters.

The Chart

Those of you who are afraid of heights may not like the looks of this chart. But, even after the recent surge in share price, you still aren't paying much for shares here. The forward P/E is less than 11 times and the PEG ratio is just 0.9.

Jabil's price to sales ratio comes in at 0.32. All of these valuations are in line with similar companies.

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Small Cap Trader service
 
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