ST. PETERSBURG, FL -- Analysts are picking Jabil Circuit apart after the EMS firm lowered its earnings per share guidance for its May quarter and admitted to three operating mishaps during the quarter.

"After not missing guidance for four-plus years, we find it suspicious that Jabil incurred three isolated operating miscues in the same quarter -- when any one of the three would have caused (the company to miss its guidance). We also find it bizarre that Jabil provided such a wide EPS range, given that the quarter closed two weeks ago," wrote Carter Shoop of Deutsche Bank Equity Research in a research note issued last night.

"Jabil's conspicuous preannouncement raises questions about its operating controls and management's credibility. "

Earlier this week Jabil had lowered its May quarter EPS guidance 14 to 23%, citing mistakes in its electromechanical operations and to certain production and repair facilities in the Americas.

DB valued each mistake as worth 2 to 3 cents per share. Jabil gave an updated range for May of 33 to 37 cents per share, down from its original guidance of 43 cents.

Shoop wrote at the time that, "As a rule of thumb, a bad quarter is rarely a singular event."

Jabil management held a conference call last night but did not state how long it expects the problems in this quarter to impact margins. The company's revenue is expected to be in-line with previous guidance of $2.5 billion to $2.6 billion.

DB said it is assuming a "cautious" outlook in the belief that "it will take longer than expected to recapture this lost margin, and that fiscal year 2007 estimates will be revised lower when Jabil reports next week. "

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