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Jabil Q1 profit jumps 94% beats estimates

Electronics manufacturing company Jabil Inc (JBL) reported a 94% jump in earnings for the first quarter helped by the positive momentum across all of its business segments. The results exceeded analysts’ expectations. Following this, the stock inched up over 6% in the after-market session.

Net income climbed 94% to $124.1 million and earnings jumped 117% to $0.76 per share. Core earnings, adjusted for non-comparable items, increased 12.5% to $0.90 per share.

Net revenues grew 16.5% year-over-year to $6.5 billion. Diversified Manufacturing Services revenue increased 10% and Electronics Manufacturing Services revenue grew by 22%.

Looking ahead into the second quarter, the company expects net revenue in the range of $5.8 billion to $6.4 billion and earnings in the range of $0.20 to $0.48 per share. Core earnings are anticipated to be in the range of $0.51 to $0.71 per share.

Jabil Circuit Q4 earnings top estimates; stock gains

Operating income is projected to be in the range of $116 million to $168 million for the second quarter. Diversified Manufacturing Services revenue is predicted to be up 6% year-on-year and Electronics Manufacturing Services revenue is expected to grow by 23% from the previous year. Total company revenue growth is predicted to be 15% year-over-year.

“We expect this positive momentum to continue into our second quarter driven by strength in end-markets like automotive, cloud, healthcare and 5G wireless. I’m also pleased that the outlook for fiscal 2019 remains consistent as we deliver value for shareholders through strong earnings growth and year-over-year increasing cash flows,” CEO Mark Mondello said.

Shares of Jabil ended Tuesday’s regular session up 3.01% at $22.21 on the NYSE. The stock has fallen over 15% in the year so far and over 24% in the past three months.

 

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