ST. PETERSBURG, Fla. - Jabil Inc. (NYSE: JBL), a manufacturing solutions provider, today confirmed its third-quarter guidance for fiscal year 2024 but has withdrawn its fiscal year 2025 outlook due to market uncertainties and an upcoming CEO transition.
For the third quarter, Jabil is maintaining its revenue projection of $6.2 billion to $6.8 billion, with GAAP operating income expected to be between $221 million and $301 million.
The company anticipates GAAP diluted earnings per share to range from $0.82 to $1.38. In terms of non-GAAP measures, core operating income is forecasted to be between $325 million and $385 million, with core diluted earnings per share at $1.65 to $2.05.
CEO Mike Dastoor commented on the company's performance amidst a challenging fiscal year, noting the divestiture of their Mobility business and plans to use most of the proceeds for share repurchases.
Despite weakened markets in areas like renewables and electric vehicles, Dastoor expressed confidence in achieving a core margin of 5.6% and core diluted earnings per share of $8.40 for FY24. The company also expects to generate over $1 billion in adjusted free cash flow.
However, Jabil has decided to withdraw its previously issued guidance for fiscal year 2025, citing current visibility in certain end markets and the unexpected CEO transition.
Dastoor remains optimistic about the company's future, highlighting opportunities in AI data center hardware, power and energy infrastructure, and healthcare, among others.
Jabil will present at the J.P. Morgan Global Technology, Media and Communications Conference on Tuesday, May 21, 2024, where further details may be discussed.
This news is based on a press release statement and includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially. Jabil's filings with the Securities and Exchange Commission provide additional information on these risks.
InvestingPro Insights
As Jabil Inc. (NYSE: JBL) navigates through market fluctuations and leadership changes, the company's financial health and stock performance remain a focus for investors. According to the latest data from InvestingPro, Jabil has a market capitalization of $13.87 billion, with a P/E ratio of 9.91, indicating the stock may be trading at a low price relative to near-term earnings growth. This aligns with one of the InvestingPro Tips that highlights Jabil's attractive P/E ratio.
In terms of shareholder returns, one of the InvestingPro Tips points out that Jabil has been aggressively buying back shares, which can be a signal of management's confidence in the company's value and a contributor to shareholder yield. Additionally, Jabil has maintained dividend payments for 19 consecutive years, reflecting its commitment to returning value to shareholders.
While analysts have revised their earnings downwards for the upcoming period, it's noteworthy that Jabil's gross profit margin stands at 8.94% over the last twelve months as of Q2 2024. The company's solid history of profitability and its status as a prominent player in the Electronic Equipment, Instruments & Components industry may provide a cushion against short-term headwinds.
For those considering an investment in Jabil, it may be beneficial to explore the full range of insights available on InvestingPro. Currently, there are 15 additional InvestingPro Tips listed, which could help investors make more informed decisions. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and gain access to these valuable insights.
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