On June 20, 2024, Jabil Inc (JBL, Financial) released its 8-K filing detailing the financial results for the third quarter of fiscal year 2024. Jabil Inc is a United States-based company engaged in providing manufacturing services and solutions, with operations in two segments: Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS).
Performance Overview
Jabil Inc (JBL, Financial) reported net revenue of $6.8 billion for Q3 FY2024, surpassing the analyst estimate of $6.53 billion. The company also reported U.S. GAAP diluted earnings per share (EPS) of $1.06, which fell short of the estimated $1.35. However, on a non-GAAP basis, core diluted EPS was $1.89, significantly exceeding expectations.
Company Background
Jabil Inc provides comprehensive electronics design, production, and product management services to companies in various industries. The EMS segment, the key revenue driver, focuses on leveraging IT, supply chain design, and engineering technologies centered on core electronics. The DMS segment emphasizes providing engineering solutions, particularly in material sciences, technologies, and healthcare.
Financial Achievements and Challenges
Despite divesting its Mobility business and experiencing softness across multiple end-markets, Jabil Inc (JBL, Financial) captured growth in the AI datacenter space. CEO Mike Dastoor commented,
“It’s clear that Jabil has navigated a period of significant transformation this fiscal year: a year in which we divested our Mobility business, captured growth in the AI datacenter space, and experienced softness across multiple end-markets.”
Jabil Inc (JBL, Financial) remains on track to deliver 5.6% in core margins and $8.40 of core diluted EPS in FY2024, while generating more than $1 billion in adjusted free cash flow. The company is also committed to repurchasing $2.5 billion of its shares.
Key Financial Metrics
| Metric | Q3 FY2024 | Q3 FY2023 |
|---|---|---|
| Net Revenue | $6.8 billion | $8.5 billion |
| U.S. GAAP Operating Income | $261 million | $375 million |
| U.S. GAAP Diluted EPS | $1.06 | $1.72 |
| Core Operating Income (Non-GAAP) | $350 million | Not Provided |
| Core Diluted EPS (Non-GAAP) | $1.89 | Not Provided |
Income Statement Highlights
For the third quarter, Jabil Inc (JBL, Financial) reported a net revenue of $6.8 billion, a decrease from $8.5 billion in the same period last year. The U.S. GAAP operating income was $261 million, down from $375 million in Q3 FY2023. The U.S. GAAP diluted EPS was $1.06, compared to $1.72 in the previous year.
Balance Sheet and Cash Flow
As of May 31, 2024, Jabil Inc (JBL, Financial) reported total assets of $17.4 billion, down from $19.4 billion as of August 31, 2023. The company’s cash and cash equivalents increased to $2.46 billion from $1.80 billion. Net cash provided by operating activities was $1.18 billion for the nine months ended May 31, 2024, compared to $1.05 billion in the same period last year.
Outlook
For the fourth quarter of fiscal year 2024, Jabil Inc (JBL, Financial) expects net revenue to be in the range of $6.3 billion to $6.9 billion. The U.S. GAAP diluted EPS is projected to be between $1.40 and $1.88, while the core diluted EPS (Non-GAAP) is expected to range from $2.03 to $2.43.
For the full fiscal year 2024, the company anticipates net revenue of $28.5 billion, core operating margin (Non-GAAP) of 5.6%, core diluted EPS (Non-GAAP) of $8.40, and adjusted free cash flow (Non-GAAP) of over $1 billion.
For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Jabil Inc for further details.
