Shares of Jabil Circuit plummeted 13 percent to a 52-week low in extended trading Tuesday, after the company reported an unexpected net loss of $24-million, or 12 cents per share, for its second quarter ended Feb. 29.
The St. Petersburg-based electronics manufacturer had net income of $13.9-million, or 7 cents per share, for the comparable period a year earlier. Revenue for the second quarter was $3.06-billion, up 4 percent from $2.93-billion a year earlier.
Jabil shares hit $9.90 in after-market trading.
Jabil blamed its showing on sluggish customer demands, a tight economy and restructuring charges, which climbed to $42-million during the quarter.
The company predicted in December that its earnings will fall short of analysts' expectations ranging between 16 to 20 cents a share.
Its shares took a beating after that announcement. Analysts were expecting a profit of 18 cents a share on sales of $3.05-billion.
Things don't look upbeat in the immediate future. CEO Tim Main said he expects the slowdown to reduce the company's growth rate and restrict margins for the next quarter or two.
Jabil said that for its current fiscal quarter, it expects to post revenue of between $3.05-billion and $3.15-billion, below the $3.25-billion estimated by Wall Street.
Main, who has survived two recessions with the company, told analysts in a conference call that he's optimistic about a "strong bounce-back" in the fall.
"We have no major fixes," he said. "Business is in good condition."
He said even though U.S. consumer confidence is low, "the demand is still strong in Asia, and Europe is hanging in there."
Madhusmita Bora can be reached at email@example.com or (813) 225-3112.