Jabil Circuit became the latest victim of investors’ impatience Tuesday, plunging 22% after warning that its quarterly earnings will come in below forecasts.
The contract manufacturer, whose customers include some of the biggest names in technology, maintained its previous sales guidance of $2.5-$2.6 billion, but said earnings will come in at 33-37 cents a share, well below 43-cent forecasts.
The company cited “operational issues” within its “electromechanical operations and with certain production and repair facilities in the America’s region.”
“We are disappointed with our financial performance in the third fiscal quarter of 2006 and are committed to improving our operational and financial performance,” CEO Timothy Main said in a statement. “Despite these short-term challenges, we are optimistic about the future. Revenues continue to show strong growth and we continue to expect core earnings for the quarter and for the year to exceed prior-year levels.”
The broader market fell once again in volatile trade Tuesday, as core wholesale prices ticked up a larger than expected 0.3% in May. Consumer inflation data will be reported Wednesday morning.
The Nasdaq lost 19 to 2072, the S&P 500 fell 13 to 1223, and the Dow dropped 86 to 10,706. Volume surged to 3.15 billion shares on the NYSE, and 2.55 billion on the Nasdaq. Decliners led 25-7 on the NYSE, and 22-8 on the Nasdaq. Downside volume was 89% on the NYSE, and 81% on the Nasdaq. New highs-new lows were 16-293 on the NYSE, and 44-279 on the Nasdaq.
Qualcomm rose 1.5% after raising guidance.
Intel managed a bounce finally, gaining 1.5% on the day, while AMD
remained under pressure, losing 5%.
Lamson & Sessions and Diodes
surged after raising guidance.
Apple tacked on 2% on an upgrade.
