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Jabil shares gain on better-than-expected Q3 results

EditorRachael Rajan
Published 06/20/2024, 08:36 AM
© Reuters.
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ST. PETERSBURG, Fla. - Jabil Inc. (NYSE: JBL), a leading provider of comprehensive engineering, manufacturing, and supply chain solutions, today reported its financial results for the third quarter of fiscal year 2024.

The company posted adjusted earnings per share (EPS) of $1.89, slightly surpassing the analyst consensus of $1.85. Jabil's stock price inched up by 1% following the announcement.

The company's revenue for the quarter stood at $6.8 billion, exceeding the $6.53 billion consensus estimate. When compared to the same quarter last year, Jabil's revenue has experienced a significant decline from $8.475 billion, indicating a challenging market environment. However, despite the year-over-year (YoY) revenue decrease, Jabil's ability to beat analyst expectations on both EPS and revenue fronts has been a key factor in the positive investor sentiment.

Looking ahead to the fourth quarter of fiscal year 2024, Jabil provided guidance for EPS in the range of $2.03 to $2.43, with the midpoint of $2.23 slightly above the analyst consensus of $2.22. The company also anticipates revenue to be between $6.3 billion and $6.9 billion, with the midpoint falling below the consensus estimate of $6.8 billion.

CEO Mike Dastoor commented on the company's performance, stating, "Despite the softness across multiple end-markets, we remain on track to deliver 5.6% in core margins and $8.40 of core diluted EPS in FY24, while generating more than $1 billion in adjusted free cash flow." Dastoor also highlighted Jabil's strategic positioning to capitalize on global trends in various sectors, including datacenter power and cooling, electric and hybrid vehicles, healthcare, and automated warehousing.

For the full fiscal year 2024, Jabil's outlook remains strong, with expectations to achieve a core operating margin of 5.6% and core diluted EPS of $8.40, alongside generating over $1 billion in adjusted free cash flow. The company's strategic initiatives, such as the divestiture of its Mobility business and investments in the AI datacenter space, are set to bolster its financial standing and operational capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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