Jabil (JBL) Q4 Earnings And Revenues Surpass Estimates

Zacks Investment Research | Oct 01, 2017 09:43PM ET

Jabil Inc. (NYSE:JBL) reported better-than-expected fiscal fourth-quarter 2017 results wherein both the top and the bottom line surpassed the Zacks Consensus Estimate and recorded year-over-year improvement.

The company reported earnings of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents and were much higher than the prior-year quarter’s figure of 28 cents.

Revenues increased year over year to $5.02 billion from $4.43 billion and outpaced the Zacks Consensus Estimate of $4.89 billion as well.

Electronics Manufacturing Services (EMS) revenues (representing 57% of revenues) came in at about $2.87 billion, up 3% year over year. Diversified Manufacturing Services (DMS) revenues (43% of revenues) increased 32% year over year to $2.15 billion.

The year-over-year improvement was primarily driven by the better-than-expected performance of the EMS segment coupled with double-digit growth at the company’s Healthcare and Packaging businesses part of the DMS segment.

The company earned approximately $191.5 million in core operating income. Core operating margin was 3.8%, representing a 140 basis points (bps) improvement year over year.

Notably, shares of Jabil have gained 20.6% year to date, outperforming the

Jabil Circuit, Inc. Quote

Guidance

The company provided guidance for first-quarter fiscal 2018.

For the first quarter, Jabil expects total revenue to increase 8% (at mid-point) year over year in the range of $5.25–$5.75 billion. Core operating income is estimated in the range of $198–$258 million.

DMS revenues are forecast to grow 13% year over year to $2.7 billion.

EMS revenues are anticipated to increase 3% on a year-over-year basis to $2.8 billion.

The company is expected to post core earnings in the range of 65–91 cents per share on a non-GAAP basis.

Zacks Rank & Stocks to Consider

Currently, Jabil Circuit sports a Zacks Rank #1 (Strong Buy). You can see Zacks Investment Research

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Written By: Zacks Investment Research

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