Jabil Inc. (NYSE:JBL), a leading provider of printed circuit boards, announced on Monday that its board of directors has approved amendments to the company's bylaws, effectively lowering the ownership threshold required for shareholders to call a special meeting. The new bylaw changes, which took effect immediately, reduce the threshold from a majority to at least twenty-five percent of the voting power.
The modifications, adopted on October 17, 2024, aim to streamline the process for shareholders to convene special meetings and reflect an update to related procedural details. This move is seen as a step towards enhancing shareholder rights and improving corporate governance practices.
The St. Petersburg, Florida-based company, which operates under the SIC category 3672 for Printed Circuit Boards Manufacturing, filed the changes with the U.S. Securities and Exchange Commission (SEC) today. The revised bylaws are accessible through the SEC's filing system, with the amendments detailed in Exhibit 3.1 and changes from the prior version highlighted in Exhibit 3.2 of the filing.
Jabil Inc., originally known as Jabil Circuit Inc (NYSE:JBL). until its name change in March 1993, has a fiscal year ending on August 31. The company's commitment to transparency and shareholder engagement is underscored by this latest amendment to its governance documents.
The information regarding these corporate governance changes is based on a press release statement and the formal documentation provided to the SEC.
In other recent news, Axiado Corporation and Jabil Inc. have announced the development of new server solutions aimed at enhancing security for cloud and data-center environments. The servers, conforming to Open Compute Project standards, feature advanced AI-driven cybersecurity and offer a choice between AMD (NASDAQ:AMD) 5th Generation EPYC Zen5 and Intel (NASDAQ:INTC) Xeon 6 processors. Axiado's AI-driven security features embedded in these servers are designed to keep data centers agile and secure against emerging challenges.
Jabil Inc. reported strong financial results for the fourth quarter and fiscal year 2024, with Q4 revenues reaching $7 billion. The company completed a $2.5 billion share repurchase program and announced a new $1 billion buyback plan for fiscal year 2025. Jabil projects Q1 FY '25 revenues to be between $6.3 billion and $6.9 billion, with core earnings per share estimated at $1.65 to $2.05.
Jabil has also made strategic moves, including the acquisition of Mikros Technologies LLC to enhance its data center solutions and address thermal management needs in sectors like AI, energy storage, and electric vehicles. Jabil has reorganized into three segments: Regulated Industries, Intelligent Infrastructure, and Connected Living & Digital Commerce. The company divested its Mobility business for $2.2 billion, returning much of the proceeds to shareholders. These are the recent developments that have unfolded.
InvestingPro Insights
Jabil Inc.'s recent move to lower the ownership threshold for calling special meetings aligns with its strong market position and financial performance. According to InvestingPro data, Jabil boasts a market capitalization of $13.97 billion and a P/E ratio of 10.82, indicating a potentially undervalued stock relative to its earnings. This is further supported by an InvestingPro Tip highlighting that Jabil is trading at a low P/E ratio relative to its near-term earnings growth.
The company's commitment to shareholder value is evident not only in its governance changes but also in its financial management. An InvestingPro Tip reveals that management has been aggressively buying back shares, which often signals confidence in the company's future prospects. Additionally, Jabil has maintained dividend payments for 19 consecutive years, demonstrating a consistent return to shareholders.
Despite a revenue decline of 16.77% in the last twelve months, Jabil maintains a strong financial position with an operating income margin of 4.98%. The company's ability to generate profits in a challenging environment is reflected in its diluted EPS of $11.17 for the same period.
For investors seeking more comprehensive analysis, InvestingPro offers 14 additional tips on Jabil, providing deeper insights into the company's financial health and market position.
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