Jabil has announced its preliminary, unaudited financial results for the third quarter of fiscal year 2024. Jabil has navigated a period of significant transformation this fiscal year, including divesting our Mobility business, capturing growth in the AI datacenter space, and facing softness across multiple end-markets, said CEO Mike Dastoor. “Despite these challenges, we are on track to achieve 5.6% in core margins and $8.40 of core diluted EPS in FY24, while generating over $1 billion in adjusted free cash flow. Additionally, we are committed to repurchasing $2.5 billion of our shares. Looking ahead, we are well-positioned to benefit from trends in datacenter power and cooling, electric and hybrid vehicles, healthcare and pharma solutions, semi-cap equipment, and automated warehousing,” he concluded.
Third Quarter of Fiscal Year 2024 Highlights:
- Net revenue: $6.8 billion
- U.S. GAAP operating income: $261 million
- U.S. GAAP diluted earnings per share: $1.06
- Core operating income (Non-GAAP): $350 million
- Core diluted earnings per share (Non-GAAP): $1.89
Fourth Quarter of Fiscal Year 2024 Outlook:
- Net revenue: $6.3 billion to $6.9 billion
- U.S. GAAP operating income: $285 million to $355 million
- U.S. GAAP diluted earnings per share: $1.40 to $1.88
- Core operating income (Non-GAAP): $365 million to $425 million
- Core diluted earnings per share (Non-GAAP): $2.03 to $2.43
Core operating income and core diluted earnings per share exclude anticipated adjustments of $12 million for amortization of intangibles ($0.09 per diluted share), $18 million for stock-based compensation and related charges ($0.14 per diluted share), and $40-$50 million ($0.32-$0.40 per diluted share) for restructuring, severance, and related charges.
Fiscal Year 2024 Outlook:
- Net revenue: $28.5 billion
- Core operating margin (Non-GAAP): 5.6%
- Core diluted earnings per share (Non-GAAP): $8.40
- Adjusted free cash flow (Non-GAAP): $1+ billion
Definitions and Use of Non-GAAP Financial Measures:
“U.S. GAAP” refers to U.S. generally accepted accounting principles. Jabil’s core financial measures, such as core operating income, core earnings, core diluted earnings per share, and adjusted free cash flow, exclude certain items like amortization of intangibles, stock-based compensation, restructuring charges, and other specific adjustments. These measures provide investors with additional insights into Jabil’s core manufacturing operations. The definitions and reconciliations of these non-GAAP measures to the most directly comparable U.S. GAAP measures are detailed in the supplemental information section of the release.
Forward-Looking Statements:
This release contains forward-looking statements based on current expectations and assumptions, involving risks and uncertainties that could cause actual results to differ materially. Factors include, but are not limited to, potential discrepancies in finalizing financial results, unexpected liabilities from the Mobility transaction, managing production and capital expenditures, changes in customer demand, the impact of COVID-19, dependency on key customers and suppliers, technology changes, competition, and various operational, financial, and regulatory risks. More detailed information about these risks can be found in Jabil’s SEC filings.
Meeting and Replay Information:
Jabil will host a conference call at 8:30 a.m. ET today to discuss its third-quarter earnings. The live audio webcast and accompanying slides can be accessed in the Investor Relations section of Jabil’s website at Jabil Investor Relations. An archived replay will be available after the call.
