Jabil Successfully Closes Mobility Divestiture; Revises Q2 Outlook

(RTTNews) - Jabil Inc. (JBL) announced the closing of the transaction to divest its Mobility business to BYD Electronic. With the transaction closing earlier, Jabil now expects the midpoint of the prior guidance range for net revenue and core earnings per share for the second quarter to be lower by approximately $400 million and $0.30, respectively, which aligns with the guidance issued on first quarter earnings call.

For the second quarter, the company now expects core earnings per share in a range of $1.43 - $1.83. Prior guidance range was $1.73 - $2.13. Net revenue is now projected in a range of $6.6 billion - $7.2 billion. Previously, the guidance range was $7.0 billion - $7.6 billion.

CFO Mike Dastoor said: "The earlier close and receipt of funds will enable us to begin initiating plans to reduce stranded costs and executing a series of accelerated buybacks throughout fiscal 2024. As a result, we expect to fully utilize our current $2.5 billion dollar repurchase authorization this fiscal year. These actions give me confidence that we will be able to offset lower income in Q2 and deliver core earnings for fiscal 2024 in excess of $9 per share."

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.