Contract manufacturer Jabil (JBL) on Wednesday beat analyst expectations for earnings in its fiscal fourth quarter. But its revenue was below views. JBL stock dropped on the news.
The St. Petersburg, Fla.-based company earned an adjusted $1.44 a share on sales of $7.41 billion in the quarter ended Aug. 31. Wall Street had forecast Jabil earnings of $1.38 a share on sales of $7.67 billion, according to FactSet. On a year-over-year basis, Jabil earnings rose 47% while sales climbed 1%.
For the current quarter, Jabil expects to earn an adjusted $1.80 a share on sales of $8.3 billion. Analysts were modeling Jabil earnings of $1.75 a share on sales of $8.29 billion in fiscal Q1, FactSet said.
“In a world where increasingly complex hardware needs to be built, Jabil is incredibly well-positioned to benefit from secular growth we’re experiencing across vehicle electrification, connected healthcare and infrastructure development, to name a few,” Chief Financial Officer Mike Dastoor said in a news release.
JBL Stock Slides
Jabil provides manufacturing services for electric vehicles, health care, cloud computing, clean energy, and environmentally friendly packaging, to name a few markets.
In the fiscal fourth quarter, sales in Jabil’s Diversified Manufacturing Services group rose 10% while sales in its Electronics Manufacturing Services group declined 6%.
In morning trading on the stock market today, JBL stock fell 2.5%, near 59.40.
On July 29, JBL stock broke out of a flat base at a buy point of 59.05, according to IBD MarketSmith charts.
JBL stock notched a 21-year high of 63.78 on Sept. 13 before retreating to the 5% chase zone of its breakout. It hit its all-time high of 68 in September 2000 during the dot-com bubble.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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