Jabil cuts earnings outlook as sale of mobility business closed a month early
Jabil Inc.
JBL,
lowered its guidance ranges for fiscal second-quarter profit and revenue, because the deal to sell its mobility business closed a month earlier than expected. The the electronics manufacturing services company’s stock was still inactive in the premarket. Jabil said it now expects revenue of $6.6 billion to $7.2 billion, down from previous guidance of $7.0 billion to $7.6 billion, and lowered its outlook for adjusted earnings per share to $1.43 to $1.83 from $1.73 to $2.13. Jabil said the previous guidance ranges provided earlier in December assumed 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. “The net proceeds will enable us to enhance our shareholder-centric capital framework, including incremental share buybacks,” said Chief Executive Kenny Wilson. “Additionally, it will provide opportunities for further investment in key areas of our business.” For fiscal 2024, the revenue guidance was trimmed to $30.6 billion from $31 billion but the adjusted EPS outlook was kept at $9.00+. Jabil’s stock has soared 86.7% year to date, while the S&P 500
SPX,
has advanced 24.6%.
