Jabil’s Star Dims

Ruh-roh.

Jabil, long the apple of investors’ eyes because of its high operating margins and strong bottom line growth, is in hot water with Wall Street over its admission of three operations “miscues” during the quarter ended May 31.

Carter Shoop of Deutsche Bank Equity Research went so far as to call Jabil’s annoucement of internal problems and its revision of guidance downward “suspicious” and “bizarre.”

“Jabil’s conspicuous preannouncement raises questions about its operating controls and management’s credibility. ”

“As a rule of thumb, a bad quarter is rarely a singular event,” Shoop wrote. No kidding: Sanmina-SCI, the worst offender in recent memory, took 20 straight quarters of “one-time” charges.

Let’s hope that this series of event is only a temporary dimming, versus a deadening, of Jabil’s once-bright star.

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About Mike

Mike Buetow is editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He is also vice president and editorial director of UP Media Group, for which he oversees all editorial and production aspects. He has more than 20 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow