Jabil Inc. (JBL) – Get Report shares traded higher Thursday after the Apple (AAPL) – Get Report supplier posted stronger-than-expected fourth quarter earnings and a robust near-term outlook.
Jabil, which makes casings for Apple’s iPhones and iPads, said earnings for the three months ending in August were pegged at 98 cents per share, up 11.4% from the same period last year and firmly ahead of the Street consensus forecast of 67 cents per share. Group revenues, Jabil said, rose 11% to $7.3 billion, again topping analysts’ estimates of a $6.3 billion tally.
Jabil also said it sees current quarter revenues in the range of $6.7 billion to $7.3 billion, and diluted earnings in between 79 cents at $1.02 per share.
“As we exit FY20 and look ahead, I am excited with the momentum underway in our business,” said CFO Mike Dastoor. “Several of our key businesses remain especially strong including Mobility, Healthcare and Cloud.”
“At the same time, we’re permanently transitioning certain components we procure in our EMS segment from the current purchase-and-resale model to a consignment service model,” he added.
Jabil shares were marked 3% higher in pre-market trading Thursday following the earnings release to indicate an opening bell price of $33.35 each, a move that would extend the stock’s six-month gain to around 53%.
Jabi’s Diversified Manufacturing Services unit, which includes its Apple contract, saw revenues grow 17% from last year for the quarter, and 8% over the whole of the fiscal year.
Electronics Manufacturing Services, which accounts for nearly two-thirds of the group’s top line, saw revenues grow 8% on the quarter and 8% for the fiscal year.