Jabil Inc. Beats Expectations with $7 B in Q4 Revenue and $2.30 Core EPS
Jabil Inc. (NYSE: JBL) has reported a strong fourth quarter, with net revenue reaching $7 billion.
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Jabil Inc. (NYSE: JBL) has reported its preliminary, unaudited financial results for the fourth quarter and fiscal year ending August 31, 2024. In the fourth quarter, the company achieved net revenue of $7 billion.
U.S. GAAP operating income was registered at $318 million, while core operating income (Non-GAAP) was $401 million. The company’s U.S. GAAP diluted earnings per share stood at $1.18, and core diluted earnings per share (Non-GAAP) reached $2.30.
CEO Mike Dastoor highlighted that despite facing challenges in multiple end-markets, Jabil managed to deliver core margins of 5.5% and $8.49 of core diluted EPS for the fiscal year 2024. The firm also generated over $1 billion in adjusted free cash flow and returned $2.5 billion to shareholders through buybacks.
Jabil Inc. Beats Expectations in Fiscal Q4
When comparing Jabil’s fourth-quarter performance to market expectations, the company exceeded analyst forecasts.
The expected earnings per share (EPS) for the quarter were $2.22, while the actual core diluted EPS came in at $2.30. This indicates a positive surprise, reflecting Jabil’s ability to outperform expectations by $0.08 per share. Similarly, the company’s net revenue of $7.0 billion surpassed the expected $6.59 billion, showcasing a stronger-than-anticipated revenue generation.
The company’s ability to exceed both EPS and revenue expectations is a testament to its robust operational execution and strategic initiatives. Despite the divestiture of its Mobility business and the challenges posed by various end-markets, Jabil’s performance has been resilient.
Jabil Expects Net Revenue in Q1 FY’25 to be Between $6.3 Billion to $6.9 Billion
Jabil has provided its outlook for the first quarter of fiscal year 2025. The company projects net revenue to be in the range of $6.3 billion to $6.9 billion. U.S. GAAP operating income is expected to be between $143 million and $223 million, with U.S. GAAP diluted earnings per share estimated to be between $0.26 and $0.83.
For core operating income (Non-GAAP), the guidance is set between $304 million and $364 million, and core diluted earnings per share (Non-GAAP) is anticipated to range from $1.65 to $2.05.
For the full fiscal year 2025, Jabil forecasts net revenue of approximately $27.0 billion. The company expects to maintain a core operating margin (Non-GAAP) of 5.4% and achieve core diluted earnings per share (Non-GAAP) of $8.65.
Additionally, Jabil projects adjusted free cash flow (Non-GAAP) of $1.2 billion. These projections underscore the company’s confidence in its strategic initiatives and its ability to drive consistent performance in the forthcoming fiscal year.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
