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.