Jabil Updates Fiscal 2024 Outlook
November 28 2023 - 4:10PM
Business Wire
Company to Present at Upcoming
Conference
Jabil Inc. (NYSE: JBL) today announced it is updating its
outlook for fiscal 2024.
“During the final stretch of our first quarter, we experienced
softening in demand, as a result of short-term inventory
corrections across certain end-markets where we participate,” said
CEO Kenny Wilson.
Jabil now expects revenue to be in the range of $8.3 billion -
$8.4 billion for the first fiscal quarter, slightly below the low
end of its previously announced range, while the outlook for core
earnings per share during the quarter is expected to be near the
midpoint of the range provided on September 28th, 2023.
Jabil expects this inventory rebalancing to continue into its
second fiscal quarter and as a result anticipates revenue for the
second quarter to be in the range of $7.0 billion - $7.6
billion.
For fiscal 2024, revenue is now expected to be approximately $31
billion, down 7 percent from the midpoint of previous guidance,
while the company’s outlook for core operating margin is expected
to be within the previously provided guidance range of 5.3% - 5.5%,
which will result in core earnings per share in excess of $9.00 for
fiscal 2024.
“Over the past several years we have intentionally structured
the company to be more reliable throughout a range of economic
cycles. As a result, we expect Jabil’s profitability to be more
resilient, despite softer demand. This provides yet another proof
point of Jabil’s improved ability to navigate an economic downturn.
Importantly, we continue to expect to deliver more than $1 billion
in adjusted free cash flow for the year and we remain committed to
our previously discussed share repurchase strategy,” continued
Wilson.
Jabil to Present at Upcoming Conference:
As previously announced, Jabil will present at the UBS Global
Technology Conference on Tuesday, November 28, 2023, at 4:15 PM MST
(6:15 PM EST).
A live audio webcast and replay of the event will be accessible
on the Jabil Investor Relations website at
https://investors.jabil.com.
(Definitions: “U.S. GAAP” means U.S. generally accepted
accounting principles. Jabil defines core operating income as U.S.
GAAP operating income less amortization of intangibles, stock-based
compensation expense and related charges, restructuring, severance
and related charges, distressed customer charges, acquisition and
integration charges, loss on disposal of subsidiaries, settlement
of receivables and related charges, impairment of notes receivable
and related charges, goodwill impairment charges and business
interruption and impairment charges, net plus other components of
net periodic benefit cost. Jabil defines core earnings as core
operating income, less loss on debt extinguishment, loss (gain) on
securities, other components of net periodic benefit cost, income
(loss) from discontinued operations, gain (loss) on sale of
discontinued operations and certain other expenses, net of tax and
certain deferred tax valuation allowance charges. Jabil defines
core diluted earnings per share as core earnings divided by the
weighted average number of outstanding diluted shares as determined
under U.S. GAAP. Jabil defines adjusted free cash flow as net cash
provided by (used in) operating activities less net capital
expenditures (acquisition of property, plant and equipment less
proceeds and advances from sale of property, plant and equipment).
Jabil reports core operating income, core earnings, core diluted
earnings per share and adjusted free cash flow to provide investors
an additional method for assessing operating income, earnings,
diluted earnings per share and free cash flow from what it believes
are its core manufacturing operations.
Forward Looking Statements: This release contains
forward-looking statements, including those regarding our guidance
for future financial performance for our first quarter of fiscal
year 2024 (including revenue and core earnings per share), second
quarter of fiscal year 2024 (revenues), full year 2024 (including
revenue, core operating margin, core earnings per share and
adjusted free cash flow) and our expectations with respect to stock
repurchase activities. The statements in this release are based on
current expectations, forecasts and assumptions involving risks and
uncertainties that could cause actual outcomes and results to
differ materially from our current expectations. Such factors
include, but are not limited to: scheduling production, managing
growth and capital expenditures and maximizing the efficiency of
our manufacturing capacity effectively; managing rapid declines or
increases in customer demand and other related customer challenges
that may occur; the scope and duration of the COVID-19 outbreak and
its impact on our operations, sites, customers and supply chain;
our dependence on a limited number of customers; our ability to
purchase components efficiently and reliance on a limited number of
suppliers for critical components; risks arising from relationships
with emerging companies; changes in technology and competition in
our industry; our ability to introduce new business models or
programs requiring implementation of new competencies; competition;
transportation issues; our ability to maintain our engineering,
technological and manufacturing expertise; retaining key personnel;
risks associated with international sales and operations, including
geopolitical uncertainties in Russia and Ukraine; energy price
increases or shortages; our ability to achieve expected
profitability from acquisitions; risk arising from our
restructuring activities; issues involving our information systems,
including security issues; regulatory risks (including the expense
of complying, or failing to comply, with applicable regulations;
risk arising from design or manufacturing defects; and intellectual
property risk); financial risks (including customers or suppliers
who become financially troubled; turmoil in financial markets; tax
risks; credit rating risks; risks of exposure to debt; currency
fluctuations; and asset impairment); changes in financial
accounting standards or policies; and risk of natural disaster,
climate change or other global events. Additional factors that
could cause such differences can be found in our Annual Report on
Form 10-K for the fiscal year ended August 31, 2023 and our other
filings with the Securities and Exchange Commission. We assume no
obligation to update these forward-looking statements.
About Jabil:
Jabil (NYSE: JBL) is a manufacturing solutions provider with
over 250,000 employees across 100 locations in 30 countries. The
world's leading brands rely on Jabil's unmatched breadth and depth
of end-market experience, technical and design capabilities,
manufacturing know-how, supply chain insights, and global product
management expertise. Driven by a common purpose, Jabil and its
people are committed to making a positive impact on their local
community and the environment. Visit www.jabil.com to learn
more.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231128435450/en/
Investor Contact Adam Berry Vice President, Investor
Relations (727) 577-9749 adam_berry@jabil.com
Jabil (NYSE:JBL)
Historical Stock Chart
From Sep 2024 to Oct 2024
Jabil (NYSE:JBL)
Historical Stock Chart
From Oct 2023 to Oct 2024