Jabil cuts earnings outlook as sale of mobility business closed a month early

Core Viewpoint - Jabil Inc. has lowered its fiscal second-quarter profit and revenue guidance due to the earlier-than-expected closure of its mobility business sale to BYD Electronic for $2.2 billion [1] Revenue and Earnings Guidance - Jabil now expects revenue between $6.6 billion and $7.2 billion, down from the previous range of $7.0 billion to $7.6 billion [1] - The adjusted earnings per share (EPS) outlook has been reduced to a range of $1.43 to $1.83, compared to the earlier guidance of $1.73 to $2.13 [1] Impact of Mobility Business Sale - The sale of the mobility business closed on December 29 instead of the anticipated January 31, which affected the guidance [1] - The net proceeds from the sale will enhance the company's shareholder-centric capital framework, including share buybacks, and provide opportunities for further investments in key business areas [1] Fiscal 2024 Outlook - For fiscal 2024, revenue guidance has been trimmed to $30.6 billion from $31 billion, while the adjusted EPS outlook remains at over $9.00 [1] Stock Performance - Jabil's stock has increased by 86.7% year to date, significantly outperforming the S&P 500, which has advanced by 24.6% [1]