In Short:
Jabil, an electronic parts maker, reported better-than-expected fourth-quarter results, boosting its shares by 10% in premarket trading. The Florida-based company, which produces components for clients like Apple, announced restructuring plans that include job cuts. Despite a nearly 18% drop in quarterly revenue to $6.96 billion, it anticipates strong growth in future industries, projecting $27 billion in revenue for fiscal 2025.
Jabil, a prominent electronic components manufacturer, reported stronger-than-expected results for the fourth quarter on Thursday, alongside the announcement of restructuring initiatives, which will include workforce reductions. This news contributed to a rise in its shares by as much as 10% during premarket trading.
Headquartered in St. Petersburg, Florida, Jabil serves a diverse clientele, including Apple, and specializes in manufacturing electronic components such as circuit board assemblies and systems. The company caters to various markets, including automotive, cloud computing, and commercial drones, as well as trucks and buses.
Restructuring Plans
As part of its restructuring strategy, Jabil has stated it will reduce its workforce across certain divisions; however, specific numbers regarding these reductions have not been disclosed.
Financial Outlook
The company anticipates incurring pre-tax restructuring costs and associated expenditures ranging from $150 million to $200 million over the fiscal year 2025. Despite encountering short-term demand challenges in some markets, Jabil believes it is strategically positioned to benefit from emerging trends across various sectors, including datacenter power and cooling, as well as electric and hybrid vehicles in the medium to long term.
For the quarter concluding on August 31, Jabil reported revenue of $6.96 billion, marking a decline of nearly 18% year-over-year, yet surpassing LSEG estimates of $6.58 billion. On an adjusted basis, the company recorded earnings of $2.30 per share, which exceeded analysts’ average projections of $2.20.
Looking ahead, Jabil forecasts net revenue for fiscal 2025 to be approximately $27 billion, in contrast to analysts’ expectations of $28.5 billion.
