Jabil beats on 4Q fiscal earnings and revenue, but stock still slips

Jabil Inc (NYSE:JBL) said on Tuesday that it beat expectations on both earnings per share and revenue in its fiscal fourth-quarter results due to the strong performance of its core businesses as the manufacturing services company guided for even higher revenue in the fiscal first quarter of 2019.

Earnings per share in the fiscal fourth quarter came in at $0.70, beating the expected $0.68 and the year-ago level of $0.64. Revenues reached $5.77 billion, from $5.02 billion a year ago and the expected $5.43 billion. The company said the fiscal first quarter would see revenue from $5.8 to $6.4 billion, compared with the expected $5.9 billion.

After an initial rise in the premarket, shares of the company dropped 6% at the start of trade to $28.24, having slid to a session low of $27.14.

READ: Jabil sees strong revenue growth in its third quarter, announces US$350mln stock buyback

“Our team’s performance during the year culminated in double-digit revenue growth, 24 percent core EPS expansion and core ROIC of 19 percent,” said company CEO Mark Mondello.

Revenue for manufacturing services grew 23% in fiscal 2018 and electronics manufacturing services revenue increased 11%. Total net revenue for fiscal 2018 reached $22.1 billion.

The company provides design, manufacturing, supply chain and product management services. It operates from more than 100 facilities in 29 countries.

The company is based in St Petersburg, Florida.

Story by ProactiveInvestors