Electronics contract manufacturer Jabil on Friday posted mixed results for its fiscal second quarter and guided well below views for the current period. Jabil stock fell on the news.
The St. Petersburg, Fla.-based company earned an adjusted $1.68 a share on sales of $6.77 billion in the quarter ended Feb. 29. Analysts polled by FactSet had expected earnings of $1.66 a share on sales of $6.89 billion. On a year-over-year basis, Jabil earnings dropped 11% while sales declined 17%.
Jabil's fiscal Q2 report was its first since the company divested its mobility business. Jabil sold the unit, which makes components for consumer electronics, to BYD Electronic of China for $2.2 billion in cash in late December.
The company sold the division to focus on faster-growing markets such as AI cloud data centers, electric vehicles, health care and renewable energy.
For the current quarter, Jabil forecast adjusted earnings of $1.85 a share on sales of $6.5 billion, based on the midpoint of its guidance. Wall Street was modeling earnings of $2.12 a share on sales of $7.37 billion in the fiscal third quarter.
Jabil Stock Sinks On Guidance
On the stock market today, Jabil stock fell 16.5% to close at 123.15.
Jabil is facing "revenue headwinds this year, which are expected to be short term," Chief Executive Kenny Wilson said in a news release.
"Fiscal year '24 was always going to be a transitional year for Jabil, one in which we successfully completed the largest transaction in the company's history with the mobility sale, and the subsequent efforts by our teams to optimize our footprint and cost structure for the go-forward company," he said.
For its full fiscal year, Jabil expects to earn an adjusted $8.40 a share on sales of $28.5 billion. Analysts were looking for earnings of $8.99 a share on sales of $30.89 billion.
For fiscal 2025, Jabil is targeting adjusted earnings of $10.65 a share, vs. Wall Street's goal of $10.66 a share.
Jabil stock is on the IBD Tech Leaders list.
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