Jabil Reports Third Quarter 2019 Results
ST. PETERSBURG, Fla.–Jabil Inc. (NYSE: JBL), reported preliminary, unaudited financial results for its third quarter of fiscal year 2019.
Third Quarter of Fiscal Year 2019 Highlights:
- Net revenue: $6.1 billion
- Diversified Manufacturing Services (DMS) year-on-year revenue decrease: 6 percent
- Electronics Manufacturing Services (EMS) year-on-year revenue growth: 26 percent
- U.S. GAAP operating income: $140.9 million
- U.S. GAAP diluted earnings per share: $0.28
- Core operating income (Non-GAAP): $185.8 million
- Core diluted earnings per share (Non-GAAP): $0.57
“I’m extremely pleased with our third quarter performance, highlighted by solid operational excellence and strong financial results. The team delivered 20 basis points of core margin expansion on double-digit revenue growth, culminating in an impressive 24 percent core EPS growth, year-over-year,” said CEO Mark Mondello. “Our strong year-to-date results validate that our diversification strategy has firmly taken hold,” he added.
Healthcare Business Update:
During the third fiscal quarter, Jabil successfully transitioned additional sites from Johnson & Johnson Medical Devices Companies (JJMDC) as part of the previously announced strategic collaboration between the companies.
“Our overall healthcare business achieved another important step during the third quarter with the acquisition of three new sites, located in Brandywine, Elmira and Monument,” said Mondello. “I’d like to welcome our new employees at these outstanding healthcare facilities, which further expand our talent and capabilities in this area of our business,” he added.
General Business Update:
“In the fourth quarter, our outlook for revenue, core EPS and cash flow is solid as we see robust demand in 5G / wireless, cloud, industrial, healthcare and packaging,” said Mondello. “Over the longer-term, we remain relentless in our commitment to drive margin expansion and strong cash flows through a well-balanced, diverse stream of income,” he added.
Fourth Quarter of Fiscal Year 2019 Outlook:
| • Net revenue | $6.3 billion to $6.9 billion | |
| • U.S. GAAP operating income | $169 million to $235 million | |
| • U.S. GAAP diluted earnings per share | $0.47 to $0.71 per diluted share | |
| • Core operating income (Non-GAAP) (1) | $215 million to $275 million | |
| • Core diluted earnings per share (Non-GAAP) (1) | $0.76 to $0.96 per diluted share | |
| • Diversified Manufacturing Services revenue | Increase 4 percent year-on-year | |
| • Electronics Manufacturing Services revenue | Increase 22 percent year-on-year | |
| • Total company revenue | Increase 14 percent year-on-year |
—————-
(1) Core operating income and core diluted earnings per share exclude anticipated adjustments of $8.0 million for amortization of intangibles (or $0.05 per diluted share), $16.0 million for stock-based compensation expense and related charges (or $0.10 per diluted share), $2.0 million for restructuring and related charges (or $0.01 per diluted share) and $20.0 million to $14.0 million for acquisition and integration charges (or $0.13 to $0.09 per diluted share).
