NEW YORK (AP) -- Shares of contract electronics manufacturer Jabil Circuit Inc. climbed Thursday after it beat Wall Street expectations for its latest quarter.
THE SPARK: On Wednesday, the St. Petersburg, Fla., company posted fiscal first-quarter earnings of $106 million, or 51 cents per share, on revenue of $4.6 billion. Earnings were down 6.3 percent from a year ago, while revenue rose 7 percent.
Excluding one-time items, Jabil made 61 cents per share. Analysts polled by FactSet on average expected 56 cents per share on revenue of $4.4 billion.
THE ANALYSIS: Citigroup analyst Jim Suva said Jabil is doing well, considering the sluggish global economy, but he's still waiting for more improvement in the economy before being more positive on contract electronics manufacturers like Jabil.
Brian Alexander at Raymond James noted that Jabil's earnings outlook for the current quarter was slightly below expectations, and he lowered his price target on the shares to $24 from $26. He kept a "Strong Buy" rating.
SHARE ACTION: Shares of Jabil Circuit rose $1.64, or 8.8 percent, to $20.21 in afternoon trading. The day's high of $20.29 was the highest level for Jabil since October.