To: Johnny Canuck who wrote (59375 ) 6/20/2024 4:50:01 PM From: Johnny Canuck Read Replies (1) | Respond to TECHNOLOGY | EARNINGS REPORT Karishma Vanjani Stock in Jabil , a large supplier of electronic parts, including to Apple , fell hard on Thursday after management called out “softness” in several markets. The Florida-based company posted $1.89 per share in core adjusted earnings for its third fiscal quarter, ended in May, beating the consensus forecast of $1.85 among analysts tracked by FactSet who cover the stock. Revenue was $6.77 billion, compared with the $6.53 billion analysts had expected. Jabil’s stock surged as much as 6.8% in premarket trading on Thursday, but fell shortly after an investor call with management to discuss the results. It was down 5.3% at $119.50 shortly after the open. Investors monitor Jabil’s results partly because it gives them a read-through into the state of Apple’s business. Apple made up 17% of Jabil’s revenue in fiscal 2023, the 12 months through last August. In fiscal 2022 and 2021, the respective contributions were 19% and 22%. While its quarterly results came in ahead of expectations, management’s outlook appears to have worried investors. Management said that compared with its assumptions in March, “expectations for growth in our automotive and transportation business has softened further.” That is partly due to a surplus of cars in China, which has resulted in lower local demand. “We [also] see softness in medical devices, which we expect will create a headwind to revenue in the near term,” management said. Despite these warnings, the signals for Apple are still cautiously optimistic. Jabil said its latest results and outlook have been aided by strong demand in connected devices, networking, storage, the cloud, and related markets. Given that, Jabil maintained its financial forecasts for its full fiscal year. It expects to earn $8.40 a share from $28.5 billion of revenue. That is around Wall Street’s expectations. For the current quarter, Jabil expects core adjusted earnings of between $2.03 and $2.43 per diluted share. The midpoint of that range, $2.23, is a touch better than analysts’ estimate of $2.22. The company joined the S&P 500 late last year. Write to Karishma Vanjani at karishma.vanjani@dowjones.com . Privacy Notice • Cookie Notice • • Copyright Policy • Data Policy • Your Ad Choices • Terms of Use • Copyright © 2024 Dow Jones & Company, Inc. All Rights Reserved.
