Jabil falls after CEO commentary on margin and expansion, peers also fall

Shares of companies involved in electronics contract manufacturing services are faltering after peer Jabil (JBL) reported fourth quarter results on Monday evening. JABIL BEATS, BUT STOCK FALLS: Contract manufacturer Jabil reported Q4 results that beat expectations on both the top and bottom lines, due to the strong performance of its core businesses. Q4 earnings per share came in at 70c, beating the expected 68c and the year-ago result of 64c. Jabil reported Q4 revenue of $5.77B, up from $5.02B in Q4 of 2017. The company projected first quarter revenue in the range of $5.8B-$6.4B, compared with consensus estimates of $5.9B. NO MARGIN IMPROVEMENT SEEN FOR A WHILE: "We assume that from FY19 to FY21, we'll get no expansion, no leverage of margin," CEO Mark Mondello said on the company's Q4 earnings conference call. PRICE ACTION: In afternoon trading, shares of Jabil are down almost 9% to $27.38. PEERS: Shares of other electronic contract manufacturers are also down, including Celestica (CLS), Sanmina (SANM), Flex(FLEX), and Xilinx (XLNX).