NEW YORK (AP) — Shares of Jabil Circuit tumbled 20 percent before Wednesday's opening bell after the electronics company reported slim a quarterly profit and issued a cautious outlook. Citigroup cut its rating for the stock to "Sell" from "Neutral" and reduced its target price by $10 to $14 . Analyst Jim Suva said company shares have the potential to fall another 20 percent. Jabil also said late Tuesday that it plans to sell its aftermarket services business to iQor Holdings Inc. for $725 million . Jabil said the sale of the business, which generated revenue of $1.1 billion in 2013, will allow it to focus on its engineering and manufacturing business. In premarket trading Jabil shares dropped $4.07 to $15.65 . If the losses hold during the regular session, it would mark a more than two-year low for the stock. For its most recent quarter, Jabil posted an adjusted profit of 51 cents per share, while revenue was relatively flat at $4.61 billion . Analysts polled by FactSet expected earnings of 54 cents per share on revenue of $4.47 billion . For the current quarter, Jabil projected an adjusted profit of 5 cents to 15 cents per share, well below analysts' expectations of 52 cents per share. Revenue is expected to total between $3.5 billion and $3.7 billion , while analysts expect $4.29 billion . Raymond James analyst Brian Alexander backed his "Strong Buy" rating for Jabil stock, but cut his price target by $5 , to $20 . He attributed the weaker-than-expected results and outlook to a step drop in the company's Apple Inc. -related profits and the phasing out of sales to BlackBerry Ltd.
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