Jabil Inc. (JBL) has revised its guidance ranges for fiscal second-quarter profit and revenue due to the early closure of a deal to sell its mobility business. The electronics manufacturing services company’s stock was still inactive in the premarket as of now.
Revised Revenue and Earnings Outlook
Jabil now expects its revenue for the quarter to fall between $6.6 billion and $7.2 billion, down from the previous guidance range of $7.0 billion to $7.6 billion. The company has also lowered its outlook for adjusted earnings per share, which is now expected to be between $1.43 and $1.83, down from the previous range of $1.73 to $2.13.
The earlier guidance ranges provided in December assumed that the sale of the mobility business to BYD Electronic (International) Co. Ltd. for $2.2 billion would close on Jan. 31, but it closed instead on Dec. 29.
Positive Future Prospects
Jabil’s Chief Executive, Kenny Wilson, commented on the revised guidance, stating that “the net proceeds will enable us to enhance our shareholder-centric capital framework, including incremental share buybacks.” Wilson also mentioned that the early closure of the deal would provide opportunities for further investment in key areas of the business.
Fiscal 2024 Outlook
While the revenue guidance for fiscal 2024 has been trimmed from $31 billion to $30.6 billion, the adjusted EPS outlook remains unchanged at $9.00+.
Stock Performance
So far this year, Jabil’s stock has experienced a significant increase of 86.7%, outperforming the S&P 500 index, which has advanced by 24.6%.