Jabil Inc (NYSE:JBL) stock rose 2.54% (As on June 21, 11:15:12 AM UTC-4, Source: Google Finance) after the company posted better-than-expected third-quarter results. Core operating income for the quarter came in at $350 million or 5.2% of revenue, an improvement of 40 basis points year over year. Net interest expense for Q3 came in better than expected at $64 million. This was due to lower levels of inventory during the quarter, reflecting improved working capital management by the team. Revenue for the DMS segment came in at $3.4 billion, $65 million, driven by better than expected growth within the connected devices business, offset slightly by the lower than anticipated revenue in the automotive and healthcare businesses. On a year-over-year basis, the DMS segment revenue was down approximately 23%, driven primarily by the mobility divestiture. Revenue for the EMS segment came in at $3.4 billion, approximately $200 million, driven by higher than anticipated revenue in the networking and storage end markets in the quarter. Compared to the prior year quarter EMS revenue was down roughly 18%, driven mainly by lower revenue in end markets like 5G, renewable energy, and digital print, offset slightly by good growth in cloud.

JBL in the third quarter of FY 24 has reported the adjusted earnings per share of $1.89, beating the analysts’ estimates for the adjusted earnings per share of $1.85. The company had reported the adjusted revenue decline of 20.2 percent to $6.8 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $6.53 billion.

Additionally, the third quarter cash flows from operations came in quite strong at $515 million, while net capital expenditures totaled $100 million, resulting in [$415 million] in adjusted free cash flow during the quarter. In Q3, the company had repurchased 3.7 million shares for approximately $500 million, leaving us with approximately $700 million remaining on the current $2.5 billion share repurchase authorization as of May 31.

Jabil expects fourth-quarter revenue of $6.3 billion – $6.9 billion (consensus: $6.8 billion) and adjusted EPS to $2.03 – $2.43 (consensus: $2.22). The company also reiterated FY24 revenue guidance of $28.5 billion (vs. consensus: $28.49 billion) and core EPS of $8.40 (vs. estimate of $8.37). GAAP operating income is expected to be in the range of $285 million to $355 million. In FY25, JBL now expects interest expense and the tax rate to be higher due to a pushout of interest rate kind of expectations and the global minimum tax.