© Reuters. Jabil shares drop 9% on guidance cut
Jabil (JBL) shares plunged more than 9% after-hours following the company’s updated guidance. The company noted a softening demand observed during the latter part of Q1, which is attributed to short-term inventory adjustments in certain markets.
The company now projects Q1 revenue to fall between $8.3 billion and $8.4 billion, which is slightly below the low end of its previously announced range, and worse than the consensus estimate of $8.74B. The core EPS for Q1 is expected to align closely with the midpoint of the forecast provided in September.
Jabil also expects the trend of inventory rebalancing to extend into Q2, leading to an anticipated revenue range of $7.0-$7.6B during this period, which is below the consensus of $8.1B.
For the entire fiscal year 2024, Jabil adjusted its revenue expectations to around $31B, representing a 7% decrease from the midpoint of their earlier guidance, and below the consensus estimate of $33.7B. The company’s forecast for core operating margin remains within the previously indicated range of 5.3% to 5.5%. This is expected to result in core EPS in excess of $9.00 for fiscal 2024,…
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