Q3 2024 Jabil Inc Earnings Call Transcript
Key Points
- Jabil Inc (JBL) reported $6.8 billion in revenue for Q3, exceeding the midpoint of the guidance range by $265 million.
- Core operating income improved to $350 million, representing 5.2% of revenue, a 40 basis point increase year over year.
- Net interest expense for Q3 was better than expected at $64 million due to improved working capital management.
- The company generated strong cash flows from operations at $515 million, with adjusted free cash flow totaling $415 million.
- Jabil Inc (JBL) remains committed to completing its $2.5 billion share repurchase authorization by the end of FY24, with $700 million remaining as of May 31.
- Revenue for the DMS segment was down approximately 23% year over year, primarily due to the mobility divestiture.
- EMS segment revenue decreased by roughly 18% compared to the prior year quarter, driven by lower revenue in end markets like 5G, renewable energy, and digital print.
- The automotive and healthcare businesses experienced lower than anticipated revenue, impacting overall performance.
- The company anticipates higher net interest expense and core tax rate in FY25 due to elevated interest rates and the adoption of Pillar Two global minimum tax legislation.
- Jabil Inc (JBL) rescinded its FY25 guidance due to uncertainties in end market recoveries, particularly in EVs and semi-cap equipment, and expects a potential negative impact of approximately $800 million in revenue.
Greetings and welcome to the third quarter of fiscal year 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Adam Berry, Vice President of Investor Relations. Thank you. You may begin.
Good morning, and thank you for joining Jabil's third quarter fiscal 2024 earnings call. Joining me on today's call are Chief Financial Officer, Greg Hebard; and Chief Executive Officer, Mike Dastoor. Over the next few minutes, we will review the following, review our Q3 results, provide an update on current demand, and preview our Seventh Annual Virtual Investor briefing.
Before we begin, please note that today's call is being webcast live, and during our prepared remarks, we will be referencing slides. To follow along with the slides, please visit jabil.com within the Investor Relations portion of the website. At the conclusion of today's call, the entirety of today's presentation will be posted
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