Jabil Inc. (NYSE: JBL) announced strong fourth-quarter results, exceeding analysts’ expectations despite a year-over-year revenue decline. The company reported revenue of $6.96 billion, down 17.7% from the previous year, but comfortably surpassing the consensus estimate of $6.59 billion.
Jabil’s adjusted earnings per share (EPS) also impressed, coming in at $2.30, higher than the analyst consensus of $2.22. The company’s Diversified Manufacturing Services (DMS) segment experienced a 22% year-over-year revenue decrease, while Electronics Manufacturing Services (EMS) revenue fell by 13%.
Despite the near-term challenges in some end markets, Jabil remains confident about its future. CEO Mike Dastoor emphasized the company’s strategic positioning to capitalize on long-term growth trends in areas such as data center power and cooling, electric and hybrid vehicles, healthcare and pharmaceutical delivery solutions, semiconductor equipment, and warehouse automation.
Jabil’s financial position remains robust. The company held $2.20 billion in cash and equivalents at the end of August, with an operating cash flow of $1.72 billion and an adjusted free cash flow of $1.05 billion for the year.
Looking ahead, Jabil’s board has authorized a share repurchase program of up to $1 billion in common stock. The company expects first-quarter revenue to be between $6.3 billion and $6.9 billion, with an adjusted EPS of $1.65 to $2.05. For fiscal year 2025, Jabil anticipates revenue of $27.0 billion and adjusted EPS of $8.65.
Following the positive earnings report, Jabil’s stock price surged 8.88% in premarket trading to $123.50. This strong performance highlights investor confidence in the company’s ability to navigate current market challenges and capitalize on future growth opportunities.
