In summary, we are well-positioned as we see revenue growth build over a rapid margin expansion in the range of $0.10 to $0.15 per dollar of revenue growth. With that, I would now ask you to turn to slide nine and give you a business update and fourth quarter guidance.
While we remain in a difficult and somewhat uncertain broad-based macroeconomic environment, we are seeing stabilization across all the sectors we serve. As a result, we shall not be providing specific sector guidance for the fourth quarter. Overall company guidance for the fourth fiscal quarter is as follows. Revenue is estimated to be consistent with that of the third fiscal quarter in the range of $2.5 billion to $2.7 billion. Core operating income is estimated to be $25 million to $50 million, reflecting ongoing benefits of our restructuring and cost containment initiatives. As a result, core earnings per share are expected to be in the range of $0.02 to income of $0.12 per diluted share. Selling, general and administrative expenses are estimated to be consistent with $112 million; research and development costs are expected to be $7 million. Intangibles amortization, also expected to be approximately $7 million. Stock-based compensation is estimated to be $13 million in the fourth quarter. Interest expense is estimated to be consistent with the third quarter of $19 million, and we expect, based upon current estimates of production and income levels, tax rate on core operating income to be 20% for the quarter. And finally, capital expenditures for the fourth quarter are estimated to be somewhat consistent with those of the third quarter, reflective of ongoing IT infrastructure refreshes and maintenance capital expenditure levels.
With that, I would now like to hand the call over to Tim Main.
Timothy L. Main – Chief Executive officer
Thank you, Forbes. Fiscal Q3 turned out as expected. Demand continued to decline with uneven performance across most of our sectors. Some were a bit weaker than expected while others, such as our industrial instrumentation and medical, and our AMS division, performed well in spite of the circumstances. The six-month period from mid-October to mid-April has been one of the most turbulent and difficult in our corporate experience. Excluding new business, revenues declined over 30% from fiscal Q1 to fiscal Q3. For Jabil, this was a higher level of decline than experienced in the dot.com implosion and in a shorter period of time. In addition to seeking new opportunities for growth in existing and adjacent markets, we focused on cash generation and cost control. We’re preserving our ability to grow again and to invest in our core business. While we should and we will always effort to do better, we have produced $387 million year-to-date cash flow from operations and have converted $356 million in inventory to receivables or cash since the end of our first quarter. Our liquidity and ability to grow are in excellent condition.
Late in our February quarter and into the middle part of our May quarter, business continued to decline, albeit at a slower rate. More recently, we began to see genuine stabilization across most of our industry sectors, giving us higher confidence and guiding the consistent revenue levels for August quarter. The cost reductions we’ve been driving, as well as the ramp of new business in targeted markets, will drive better earnings on similar revenue levels.
And now we turn to the future earnings power of the company and we have a very high confidence in our ability to quickly expand margins and income with revenue growth. Although mix will play a role, as will the timing and strength of the recovery, our operating leverage will be significant as we grow revenues back to the $3 billion per quarter level and above. With our market share and new business activity in a positive position, we look forward to growing our business again in a somewhat more receptive economic environment.
Beth A. Walters
Operator, we’re ready to take questions and answers now, please.
Question-and-Answer Session
Operator
(Operator Instructions) At this time if you’d like to ask a question press “*1” on your telephone keypad. To withdraw your question, press the pound key. Your first question comes from the line of Amit Daryanani with RBC Capital Markets.
Amit Daryanani - RBC Capital Markets
Thanks a lot. Good evening, guys. Forbes, just a question, you talked about 10% to 15% incremental dollar revenue flowing through the operating income line. If I kind of do my math, it looks like on a $3 billion revenue run-rate, you should be able to hit something around the 3% EBIT margin. Would that be the correct way to think about it in the long run as demand starts to come back?
Forbes I.J. Alexander
Absolutely, Amit, yes. It’s very much depending on the mix but for that type of range, if you look at the midpoint of the range to the guidance that we’ve given for the upcoming fourth fiscal quarter against that incremental revenue, that certainly gets us to that 3% and relatively comfortably, so yeah, we feel pretty good about that. The leverage that we have here, we’ve seen some of that on the way down with my prepared remarks, as we’ve seen on a year-over-year basis about $0.5 billion of revenue to come out of the top line and we certainly see that recovering on the way back. And we continue to take cost down and we are in really good shape for revenue recovery.
Amit Daryanani - RBC Capital Markets
Got it, and then just broadly speaking, I realize you don’t want to get into details on each of the end markets in terms of guidance but this generally would be a time when we should start to see some of the consumer centric markets start to see some up-tick in seasonality. Are you guys seeing that at all and is that getting offset by flat or softness in the enterprise and networking side?
Timothy L. Main
We generally would not see a big up-tick in the August quarter. I mean historically, Amit, this has been, this is kind of a challenging quarter. Consumer is really transitioning products into new products for the Christmas selling season and enterprise markets tend to be pretty sleepy. So this is a quarter where historically we’ve been happy to have consistent revenue and earnings historically. We are starting to see enterprise spending in some of the U.S. markets pick up a bit. That’s been good to see. And on the consumer side, more stabilization and we have decent exposure in the smartphone market now and that’s held in pretty well and we think we’ll be pretty robust as we move into the Christmas season. So I don’t think there’s anything anomalous about the quarter in terms of certain sectors being more robust or weaker than others. It’s pretty spotty. It’s a pretty spotty period. We are definitely not leaning into a recovery with this guidance. We are leaning into a bottoming of the market. There are some, a few green shoots out there but they could be mowed under and muddied up pretty quickly so really, we are not leaning into a robust recovery. We are really kind of planning on a bottoming, which is what we see in terms of our market sectors overall.
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