Jabil Inc. has recently released its 10-Q report, providing a detailed insight into its financial performance. The company operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services, offering a wide range of manufacturing solutions worldwide. Jabil's net revenue for the three months ended February 29, 2024, was $6,767 million, a decrease of 16.8% compared to the same period in 2023. The gross profit for the same period was $630 million, representing 9.3% of net revenue. The company's net income attributable to Jabil Inc. for the same period was $927 million, or $7.41 per basic earnings per share.
The Management’s Discussion and Analysis of Financial Condition and Results of Operations section of the report highlights that Jabil Inc. is heavily reliant on a relatively small number of customers for a significant percentage of its net revenue. The company operates globally, with 82.5% and 84.7% of its net revenue derived from international operations for the three months and six months ended February 29, 2024, respectively. Jabil Inc. has two reporting segments: EMS and DMS, each catering to different end markets.
The report also details the sale of the company's mobility business, completed on December 29, 2023, for pre-tax cash proceeds of approximately $2.2 billion. This divestiture represented the divestiture of the company's mobility business. Jabil Inc. monitors the current economic environment and its potential impact on both the customers it serves as well as its end-markets and closely manages its costs and capital resources to respond appropriately as circumstances change.
The report includes a detailed breakdown of the company's results of operations, highlighting the changes in net revenue, gross profit, selling, general and administrative expenses, research and development expenses, amortization of intangibles, and restructuring, severance, and related charges. The company's net revenue decreased during the three months and six months ended February 29, 2024, compared to the same periods in 2023, primarily driven by various factors, including the divestiture of the mobility business and fluctuations in customer demand across its segments.
Following these announcements, the company's shares moved 2.7%, and are now trading at a price of $139.6. If you want to know more, read the company's complete 10-Q report here.
