Jabil (JBL) revised its net revenue forecast for the second quarter, which sent shares nearly 1% lower in pre-market trading on Friday.
The company is now expecting a range between $6.6 billion and $7.2 billion, compared to the earlier projection of $7.0 billion to $7.6 billion.
Additionally, the company adjusted its core EPS guidance to a range of $1.43 to $1.83. Analysts are looking for EPS of $2.08 on revenue of $7.53 billion.
For the entire year of 2024, Jabil's revenue forecast was revised to $30.6 billion from the previous estimate of $31 billion. Consensus stands at $31.28 billion.
The adjustments follow the completion of the sale of Jabil's Mobility Business and the expectation of fully utilizing its $2.5 billion buyback authorization. The changes are in line with previously outlined expectations on the 1Q earnings call.
With the deal closing earlier, Jabil now anticipates the midpoint of prior 2Q guidance range for rev and core EPS to be lower by $400 million and $0.30, respectively.
“I am delighted to close the transaction and receive the net proceeds ahead of schedule,” said CFO Mike Dastoor.
“The earlier close and receipt of funds will enable us to begin initiating plans to reduce stranded costs and executing a series of accelerated buybacks throughout FY24.”