• Shares of Jabil Circuit, Inc. (NYSE: JBL), an electronic design supplier to Apple Inc. (NASDAQ: AAPL), have gained nearly 17 percent over the past year.

• Jabil said it earned $0.85 per share on revenue of $5.21 billion in its first quarter.

• Matthew Sheerin of Stifel attributed the top and bottom line beat to ramps and share gains at its largest customer, Apple.

Jabil Circuit reported its first quarter results after Wednesday's market close.

Matthew Sheerin commented in a note that Jabil's top and bottom line print exceeded his expectations of $0.80 per share and $5.18 billion in revenue. The analyst pointed out that Jabil's Diversified Manufacturing Segment (DMS) grew more than 25 percent year-over-year, mostly due to "ramps and share gains" at Apple, the company's largest customer that represented approximately 25 percent of total sales in fiscal 2015. In addition, the segment's margins hit a record high of 6.7 percent.

Related Link: Stifel Downgrades Jabil Circuit Following 'Strong Run

Looking forward, the DMS segment is expected to grow 20 percent year-over-year in fiscal 2016, but its margins are expected to fall in the bottom half of the fiscal year as management plans on investing in its operations for new program ramps.

Sheerin said that while Jabil is "executing extremely well" in a "tough' demand environment, its $900 million of capital expenditure investments should "pave the way" for "good" growth in fiscal 2017. However, the analyst suggested that much of this growth is "largely in our numbers."

Bottom line, Jabil saw a "strong" quarter due to strength from Apple, but the stock's valuation around the $26 range is "fair" at 10x forward earnings.

Shares remain Hold rated with no assigned price target.

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