Jabil Reiterates Fiscal Year 2024 Guidance

Jabil Inc. (NYSE: JBL) today announced it is confirming its previously provided third quarter of fiscal year 2024 guidance for net revenue of $6.2 billion to $6.8 billion, U.S. GAAP operating income of $221 million to $301 million, U.S. GAAP diluted earnings per share of $0.82 to $1.38, core operating income of $325 million to $385 million, and core diluted earnings per share of $1.65 to $2.05. A reconciliation of U.S. GAAP to non-GAAP measures can be found on Form-8K filed on March 15, 2024.

“I’m pleased with how our team has executed this quarter under very dynamic market conditions. FY24 has been a year of change for Jabil, as we divested our Mobility business and plan to utilize most of the net proceeds to repurchase shares. Meanwhile, some of our end markets such as renewables, 5G, semi-cap, and electric vehicles have weakened,” said CEO Mike Dastoor.

“Even with all these moving parts, we feel confident that we will deliver core margins of 5.6% and core diluted earnings per share of $8.40 in FY24, while also generating more than $1 billion in adjusted free cash flow. All in all, to see our FY24 margins and free cash flow hold up in the face of lower volumes and revenue speaks to the strength of our business,” he added.

Fiscal 2025 Outlook:

Given the current visibility in certain end markets, along with the unanticipated CEO transition, the Company is withdrawing its previously provided fiscal year 2025 guidance.

“Despite short-term challenges, I remain optimistic about Jabil’s future, thanks to our talented team and the depth of our bench strength. We are in a good position to seize opportunities in secular growth areas like AI data center hardware, power and energy infrastructure, software-defined electric and hybrid vehicles, and healthcare. Our strong margins and free cash flow give me confidence in our ability to invest in profitable future growth and continue to return capital to shareholders,” Dastoor concluded.

Company to Present at Upcoming Conference:

As previously announced, Jabil will present at the at the J.P. Morgan Global Technology, Media and Communications Conference on Tuesday, May 21, 2024, at 8:10 AM EDT.

A live audio webcast and replay of the event will be accessible on the Jabil Investor Relations website at https://investors.jabil.com.

(Definitions: “U.S. GAAP” means U.S. generally accepted accounting principles. Jabil defines core operating income as U.S. GAAP operating income less amortization of intangibles, stock-based compensation expense and related charges, restructuring, severance and related charges, distressed customer charges, acquisition and integration charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges and business interruption and impairment charges, net plus other components of net periodic benefit cost. Jabil defines core earnings as core operating income, less loss on debt extinguishment, loss (gain) on securities, other components of net periodic benefit cost, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations and certain other expenses, net of tax and certain deferred tax valuation allowance charges. Jabil defines core diluted earnings per share as core earnings divided by the weighted average number of outstanding diluted shares as determined under U.S. GAAP. Jabil defines adjusted free cash flow as net cash provided by (used in) operating activities less net capital expenditures (acquisition of property, plant and equipment less proceeds and advances from sale of property, plant and equipment). Jabil reports core operating income, core earnings, core diluted earnings per share and adjusted free cash flow to provide investors an additional method for assessing operating income, earnings, diluted earnings per share and free cash flow from what it believes are its core manufacturing operations.