Sep. 30, 2009 (Baystreet.ca) --

Electronic design company Jabil Circuit, Inc. (JBL) said late Tuesday that its fourth quarter profit fell sharply from last year, but still beat expectations.

The St. Petersburg, Florida-based company reported fiscal fourth quarter net income of $5.5 million, or 3 cents per share, compared with $57.5 million, or 30 cents per share, in the year-ago period. Excluding one-time charges, adjusted profit was 16 cents per share.

Revenue plunged 14% from last year, to $2.8 billion.

On average, Wall Street analysts expected a lower adjusted profit of 8 cents per share, on smaller revenue of $2.66 billion.

As for the full fiscal year, the company said it lost $1.17 billion, or $5.63 per share, compared with a profit of $133.9 million, or 65 cents per share, in the previous year.

Looking ahead, the company predicted first quarter profits of 24 cents to 32 cents per share, excluding items, on sales of $3 billion to $3.2 billion. Analysts are expected a lower profit of 18 cents per share, on $2.88 billion in sales.

Jabil Circuit shares rose 73 cents, or +6%, in premarket trading Wednesday.

The Bottom Line
We had removed shares of JBL from our "recommended" list last Sept.3, when the stock was trading at $15.59. The company has a 2.28% dividend yield, based on last night’s closing stock price of $12.28. The stock has technical support in the $10 price area. If shares can build further momentum on this morning's results, we see overhead resistance around the $15 price level. We would remain on the sidelines for now.

Jabil Circuit, Inc. (JBL) is not recommended at this time, holding a Dividend.com DARS Rating of 3.3 out of 5 stars.

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