Jabil Circuit (JBL), a manufacturer of electronic components for some of the leading tech companies like Apple (AAPL) and Cisco (CSCO),
has shaken the confidence of its investors following its recent
earnings release. The business not only missed the analysts’ earnings
estimates, but also gave a weak guidance for the current quarter.
Besides this, the company has also announced that it will sell its
aftermarket services unit, which is responsible for providing warranty
repair services for consumer electronics.
Following the earnings release, the company’s shares dropped by more
than 20% on Dec. 18, which is the single biggest drop in nearly six
years. The shares still haven’t recovered and are trading just 0.2 times
Jabil’s trailing sales.
Earnings Overview