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.
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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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