Jabil's Q4: Earnings Beat, $1B Buyback, FY25 Guidance And More

Jabil Inc (NYSE: JBL) reported fourth-quarter revenue of $6.96 billion, down by 17.7% year-on-year, beating the analyst consensus estimate of $6.59 billion. 

The print manufacturing company’s adjusted EPS of $2.30 beat the analyst consensus estimate of $2.22.

Segments: Diversified Manufacturing Services (DMS) revenue declined by 22% Y/Y, and Electronics Manufacturing Services (EMS) revenue fell by 13% Y/Y.

The company held $2.20 billion in cash and equivalents as of August-end. Operating cash flow for the year totaled $1.72 billion, with an adjusted free cash flow of $1.05 billion.

CEO Mike Dastoor: “While short-term demand is facing challenges in certain end-markets, we are confident that in the mid-to-long term, we are well-positioned to capitalize on secular trends in areas such as datacenter power and cooling, electric and hybrid vehicles, healthcare and pharmaceutical delivery solutions, semiconductor equipment, and warehouse automation.”

Buyback: The board authorized a share repurchase program of up to $1 billion in common stock.

Q1 Outlook: Jabil expects first-quarter revenue of $6.3 billion – $6.9 billion (consensus: $6.47 billion) and adjusted EPS to $1.65 – $2.05 (consensus: $1.84).

FY25 guidance: The company expects revenue of $27.0 billion (versus consensus: $27.19 billion) and adjusted EPS of $8.65 (versus estimate of $8.64).

Price Action: JBL stock is up 8.88% at $123.50 premarket at the last check Thursday.