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.