Key TakeawaysJabil's second-quarter revenue and current-quarter guidance came up short of forecasts as the firm faced "revenue headwinds." Shares sank nearly 17%.The electronic technology firm also reduced its full-year revenue outlook.CEO Kenny Wilson said the company always expected fiscal 2024 to be a "transitional year." Jabil Inc. (JBL) shares were down nearly 17% in afternoon trading Friday after the electronic technology firm’s second-quarter fiscal 2024 sales and current-quarter guidance missed esti ...

Core Insights - Jabil Inc. experienced a weak quarter following the sale of its mobility business, with a 16.7% decline in revenue, but margins and cash flow remain solid, allowing for substantial capital returns through share repurchases [1][4][2] - The company's cash position improved significantly, with cash up 42% year-over-year, and it is in a leaner operational state than in previous years [3][2] - Analysts have reset their expectations due to guidance for Q3 and FY being below consensus, leading to a 10% drop in stock price, although the long-term outlook remains positive with growth expected to return in FY2025 [5][1] Financial Performance - Jabil's gross margin expanded by 120 basis points, helping to offset higher costs and restructuring expenses, resulting in adjusted earnings down 10.5% year-over-year, which met consensus despite revenue weakness [4][5] - The company’s capital returns are primarily through share repurchases, which reduced the Q2 comparison by nearly 7% and are expected to continue into 2024 [2][1] Market Sentiment - Despite the recent decline, Jabil's stock is rated as a firm "buy," with a nearly 100% increase in price target over the last year, and institutional ownership stands at about 93% [6][1] - Insider selling has spiked but is considered opportunistic, with insiders still holding approximately 2.6% of shares [6][1] Technical Outlook - The technical outlook for Jabil stock is mixed, with near-term bearish activity but a long-term trend intact; support above the 150-day moving average is crucial for potential price recovery [7][1] - If the support level holds, shares could gain 15% to 20% to align with analysts' consensus targets [7][1]

Jabil Inc. (JBL) reported mixed second-quarter fiscal 2024 results, with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. The company reported a top-line contraction year over year, owing to soft demand trends in several end markets.Net IncomeNet income on a GAAP basis in the quarter was $927 million or $7.31 per share compared with $207 million or $1.52 per share in the prior-year quarter. Despite top line decline, gain from the divestiture of Mobility business suppor ...

SECOND QUARTER FISCAL YEAR 2024 RESULTS Forward Looking Statement Forward ...

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was approximately $6.8 billion, aligning with guidance, with core operating income at $338 million, or 5% of revenue, reflecting a 20 basis point increase year-over-year [5][6] - GAAP operating income was approximately $1.1 billion, with GAAP diluted earnings per share at $7.31, significantly influenced by the sale of the mobility business [6] - Core diluted earnings per share for the quarter was $1.68, exceeding the midpoint of guidance by $0.05 [6] Performance by Business Segment - DMS segment revenue was $3.4 billion, down approximately 16% year-over-year, primarily due to the mobility divestiture, but showed 11% growth in automotive and transportation [7] - EMS segment revenue was $3.3 billion, down roughly 18% year-over-year, with declines attributed to a consignment model shift in the cloud business and lower demand in 5G and renewable energy markets [8] Market Data and Key Metrics Changes - Inventory days increased to 87 days, with cash flows from operations at $218 million and adjusted free cash flow of $48 million for the quarter [9] - The company ended the quarter with cash balances of $2.6 billion and total debt to core EBITDA levels of approximately 1.2 times [9] Company Strategy and Development Direction - The divestiture of the mobility business and subsequent share buybacks reflect a strategic intent to reshape the business while maintaining shareholder returns [10] - The company is focusing on growth in automotive, healthcare, and AI data centers, with expectations of continued growth in these sectors [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite market headwinds, emphasizing a diversified approach across geographies and end markets [17] - The outlook for fiscal '25 remains optimistic, with expectations of core EPS of $10.65 driven by growth in AI-related revenue and new program wins [26][31] Other Important Information - The company successfully closed on the sale of its mobility business for approximately $2.2 billion, which has been allocated towards share repurchases [6] - AI-related revenue is expected to reach approximately $6 billion in FY '25, with a growth rate of 20% year-on-year [22][48] Q&A Session Summary Question: Insights on cuts within 5G and renewables programs - Management indicated that the cuts were due to unexpected demand reductions, particularly in India for 5G and inventory corrections in renewables, and expressed confidence that these adjustments would stabilize moving forward [36][38] Question: Drivers of better margins - The margin improvements are attributed to a mix shift towards higher-margin AI-related business and successful cost optimization efforts [40][41] Question: AI revenue quantification and competitive advantage - AI-related revenue is projected to exceed $6 billion in FY '25, with a significant portion coming from data center operations, and the company aims to leverage its integrated service offerings as a competitive advantage [47][49][66] Question: Confidence in guidance despite recent cuts - Management emphasized strong long-term relationships with customers and a conservative approach to forecasting, which supports confidence in the guidance provided [53][55]

Core Insights - Jabil's stock fell 12.5% following mixed earnings and weak guidance for fiscal Q2 2024 [1] - Analysts had expected earnings of $1.66 per share on $6.9 billion in sales, but Jabil reported a core profit of $1.68 per share and sales of $6.8 billion [1][2] Financial Performance - Jabil's total earnings for the quarter were reported at $1.1 billion, or $7.31 per share, primarily driven by its mobility division, which contributed $944 million to profits [2] - After excluding the mobility division's profits, the core profit was calculated at $1.68 per share [2] Future Guidance - Management provided guidance for fiscal Q3 revenue between $6.2 billion and $6.8 billion, with adjusted profits per share expected to range from $1.65 to $2.05 [2] - GAAP profits are projected to be between $0.82 and $1.38 per share [2] Annual Forecast - For the full year, Jabil anticipates $28.5 billion in revenue and $8.40 per share in core profits, suggesting a valuation based on core earnings rather than GAAP [3] - With a market capitalization of $18.8 billion and a share price of $128, the current valuation implies a price-to-earnings ratio of 15.2 times, which is considered expensive given a projected 12% annual growth in core earnings over the next five years [3]

Core Viewpoint - Jabil Inc reported lower-than-expected revenue for its second financial quarter, leading to a 12% decline in stock price, and issued downbeat guidance for future revenue expectations [1][2]. Financial Performance - Jabil earned $927 million in the latest quarter compared to $207 million in the same quarter last year [4]. - Per-share earnings increased from $1.52 to $7.31, with adjusted EPS reported at $1.68 [4]. - Net revenue decreased by 16% year-on-year to $6.8 billion, while consensus estimates were $1.66 per share on $6.9 billion in revenue [4]. Future Guidance - The company forecasts future revenue to fall between $6.2 billion and $6.8 billion, significantly lower than analysts' expectations of $7.4 billion [2]. - CEO Kenny Wilson expressed confidence in delivering strong core operating margins and free cash flow in FY24 despite short-term revenue headwinds [2][4].

Core Viewpoint - Jabil Inc. reported preliminary financial results for Q2 FY2024, highlighting resilience despite revenue challenges, with expectations for strong core operating margins and free cash flow in FY24 [1][4]. Financial Results - **Q2 FY2024 Highlights**: - Net revenue: $6.8 billion - U.S. GAAP operating income: $1.1 billion - U.S. GAAP diluted earnings per share: $7.31 - Core operating income (Non-GAAP): $338 million - Core diluted earnings per share (Non-GAAP): $1.68 [2][3]. Future Outlook - **Q3 FY2024 Guidance**: - Net revenue expected between $6.2 billion and $6.8 billion - U.S. GAAP operating income projected between $221 million and $301 million - U.S. GAAP diluted earnings per share estimated between $0.82 and $1.38 - Core operating income (Non-GAAP) forecasted between $325 million and $385 million - Core diluted earnings per share (Non-GAAP) anticipated between $1.65 and $2.05 [3]. - **FY2024 Updated Outlook**: - Net revenue projected at $28.5 billion - Core operating margin (Non-GAAP) expected at 5.6% - Core diluted earnings per share (Non-GAAP) forecasted at $8.40 - Adjusted free cash flow (Non-GAAP) anticipated to exceed $1 billion [4]. Management Commentary - CEO Kenny Wilson emphasized that FY2024 is a transitional year for Jabil, following the largest transaction in the company's history with the mobility sale, and expressed confidence in the company's ability to expand margins and deliver core EPS of $10.65 for FY25 [4].

Exhibit 99.1 Jabil Posts Second Quarter Results ST. PETERSBURG, Fla. – March 15, 2024 – Today, Jabil Inc. (NYSE: JBL), reported preliminary, unaudited financial results for its second quarter of fiscal year 2024. "Despite revenue headwinds this year, which are expected to be short-term, I'm pleased with the resiliency of our model and our team's demonstrated ability to execute," said CEO Kenny Wilson. "Even under these conditions, we expect to deliver strong core operating margins and free cash flow in FY24 ...

Jabil Inc. (JBL) is scheduled to report second-quarter fiscal 2024 results on Mar 15, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 2.36%. It pulled off a trailing four-quarter earnings surprise of 4.11%, on average.The leading global supplier of electronic manufacturing services is likely to record a top-line contraction year over year in the second quarter of fiscal 2024. Weakness in several end markets, macroeconomic challenges and inventory adjustme ...