Jabil Exceeds Earnings and Sales Expectations Ahead of S&P 500 Inclusion


Shares of Jabil are on the rise as the contract electronics manufacturer exceeded earnings and sales expectations for its fiscal first quarter. This positive performance comes just before Jabil joins the S&P 500 on Monday.

Impressive Financial Results

Jabil’s adjusted earnings for the first quarter, which ended on November 30, were reported at $2.60 per share. This is an improvement from the $2.31 per share recorded in the same quarter of the previous year. Wall Street analysts had predicted earnings of $2.58 per share. Additionally, Jabil’s sales reached $8.387 billion, surpassing the forecasted $8.351 billion, despite a significant decrease compared to $9.635 billion in the previous year.

CEO’s Perspective

CEO Kenny Wilson acknowledged that the company experienced a general decline in demand during the final stretch of the first quarter, resulting in reduced revenue. However, he praised the team’s ability to achieve year-over-year growth in core margins and core earnings per share.

Future Outlook

For the second quarter, Jabil expects adjusted earnings in the range of $1.73 to $2.13 per share, slightly below analysts’ expectations of $1.85 per share. The company also reaffirmed its amended financial guidance for fiscal 2024, which was announced last month.

S&P 500 Inclusion

Jabil, along with Uber Technologies and Builders FirstSource, is set to join the prestigious S&P 500 index at the beginning of next week. This news further highlights Jabil’s success and solidifies its position as a leading player in the industry.

Market Response

The positive earnings report has led to a 1.7% increase in Jabil’s stock, reaching $122.60 in premarket trading. Other manufacturing peers, including Flex, Celestica, and Sanmina, have also experienced gains. Throughout the year, Jabil’s stock has surged an impressive 77%.

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