On September 26, 2024, Jabil Inc (JBL, Financial) released its 8-K filing detailing the financial results for its fourth quarter and fiscal year ended August 31, 2024. Jabil Inc is a United States-based company engaged in providing manufacturing services and solutions, operating through two segments: Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS).
Fiscal Year 2024 Performance
Jabil Inc reported net revenue of $28.88 billion for the fiscal year 2024, exceeding the annual estimate of $28.51 billion. However, the company fell short of the estimated earnings per share (EPS) of $11.76, reporting an EPS of $11.17. The company faced challenges in multiple end-markets but saw growth in the AI datacenter sector.
Quarterly Highlights
For the fourth quarter, Jabil Inc reported net revenue of $6.96 billion, which was above the analyst estimate of $6.59 billion. The company posted a diluted EPS of $1.18, significantly below the quarterly estimate of $1.87. Despite these challenges, Jabil Inc maintained a core operating margin of 5.5% and generated over $1 billion in adjusted free cash flow for the fiscal year.
Financial Achievements and Challenges
Jabil Inc's financial achievements include returning $2.5 billion to shareholders through buybacks and maintaining a strong core operating margin. These achievements are crucial for the company as they demonstrate financial stability and shareholder value, which are significant in the hardware industry.
“It’s evident that Jabil has undergone a substantial transformation this fiscal year: a year during which we sold our Mobility business, saw growth in the AI datacenter sector, and faced challenges in multiple end-markets,” said CEO Mike Dastoor.
Income Statement and Balance Sheet Overview
| Metric | FY 2024 | FY 2023 |
|---|---|---|
| Net Revenue | $28.88 billion | $34.70 billion |
| Gross Profit | $2.68 billion | $2.87 billion |
| Operating Income | $2.01 billion | $1.54 billion |
| Net Income | $1.39 billion | $818 million |
Jabil Inc's balance sheet shows total assets of $17.35 billion, down from $19.42 billion in the previous year. The company has a strong cash position with $2.20 billion in cash and cash equivalents, up from $1.80 billion last year. Total liabilities stand at $15.61 billion, with equity at $1.74 billion.
Cash Flow Statement
Jabil Inc generated $1.72 billion in net cash from operating activities, slightly down from $1.73 billion in the previous year. The company also reported $1.35 billion in net cash provided by investing activities, primarily due to proceeds from the divestiture of businesses.
Outlook for Fiscal Year 2025
For the first quarter of fiscal year 2025, Jabil Inc expects net revenue between $6.3 billion and $6.9 billion, with a U.S. GAAP diluted EPS ranging from $0.26 to $0.83. The company also announced a new $1 billion share repurchase authorization, indicating confidence in its long-term growth prospects.
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Explore the complete 8-K earnings release (here) from Jabil Inc for further details.
