Jabil Inc. Reports Q2 Revenue of $6.8 Billion

By Bobby Samwell • Friday, March 15 10:13 • Permanent Link

Jabil Inc. (NYSE: JBL) has just released its preliminary, unaudited financial results for the second quarter of fiscal year 2024. The company reported a net revenue of $6.8 billion, with U.S. GAAP operating income reaching $1.1 billion and U.S. GAAP diluted earnings per share at $7.31.

On a non-GAAP basis, the core operating income was reported at $338 million, and core diluted earnings per share stood at $1.68.

Looking ahead to the third quarter of fiscal year 2024, Jabil Inc. expects net revenue to range between $6.2 billion to $6.8 billion. The projected U.S. GAAP operating income is estimated to be between $221 million to $301 million, with U.S. GAAP diluted earnings per share ranging from $0.82 to $1.38 per diluted share. On a non-GAAP basis, the core operating income is expected to be between $325 million to $385 million, and the core diluted earnings per share is projected to be $1.65 to $2.05 per diluted share.

For the full fiscal year 2024, Jabil Inc. has updated its outlook, anticipating net revenue of $28.5 billion, core operating margin (non-GAAP) of 5.6%, core diluted earnings per share (non-GAAP) of $8.40 per diluted share, and adjusted free cash flow (non-GAAP) of $1+ billion.

CEO Kenny Wilson expressed confidence in the company's ability to expand margins year-on-year while delivering core earnings per share of $10.65 for fiscal year 2025.

Jabil Inc.'s CEO attributed the expected challenges in fiscal year 2024 to the completion of the largest transaction in the company's history with the mobility sale. However, he remains confident in the company's ability to streamline its operations and capitalize on opportunities across its diversified end-market portfolio.

Jabil Inc. defines core operating income as U.S. GAAP operating income less certain adjustments, and core diluted earnings per share as core earnings divided by the weighted average number of outstanding diluted shares as determined under U.S. GAAP. The company also defines adjusted free cash flow as net cash provided by (used in) operating activities less net capital expenditures.

Investors and stakeholders will be keenly interested in how Jabil Inc. navigates the challenges and capitalizes on the opportunities as it moves through this transitional year and into fiscal year 2025. The market has reacted to these announcements by moving the company's shares -12.6% to a price of $128.85. Check out the company's full 8-K submission here.

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