Jabil Inc (NYSE: JBL) stock fell over 9.5% on 15 Jun, (as of 10:35 AM GMT-4; Source: Google finance)  after the company posted better-than-expected earnings for the third quarter of its FY 18 and increased its outlook for the fourth quarter. In the third quarter 2018, the company posted net income of $42.5 million, compared to a loss in the year-ago period of $25.3 million.

Meanwhile, during the third quarter, JBL had two distinct challenges. First, were unanticipated factory costs caused by broad-based material and component constraints, and second were lingering cost overruns within the packaging business. These two issues combined one macro and one more micro in nature cost the company $12 million to $13 million during the third quarter. However both the challenges are temporary, and both will dissipate. Core operating income was $150 million, which is an increase of 32% on a year-over-year basis and represented 2.8% of revenue.

Moreover, in the third quarter 2018, the company has posted the revenue for the Diversified Manufacturing Services segment of $2.3 billion, which is an increase of 36% on a year-over-year basis. The growth in this segment is due to continued diversification efforts with growth in healthcare, consumer goods, and mobility businesses, which represented 42% of total company revenue. Operating income for the segment during the quarter is 1.3%. The company’s Electronics Manufacturing Services segment revenue is $3.2 billion and posted an increase of 12% on a year-over-year basis. And reflected growth across automotive, connected home, capital equipment, industrial, energy and wireless infrastructure customers, and represented 58% of total company revenue. Operating income for the segment was 3.8%.

JBL in the third quarter of FY 18 has reported the adjusted earnings per share of 46 cents, beating the analysts’ estimates for the adjusted earnings per share of 45 cents. The company had reported the adjusted revenue growth of 35.9 percent to $5.4 billion in the third quarter of FY 18, beating the analysts’ estimates for revenue of $4.9 billion.

For its fiscal fourth quarter of 2018, the company now projects and 8% increase in revenue, with the figure expected to be in the range of $5.2 billion to $5.6 billion. JBL expects its adjusted earnings to be in the range of 56 cents and 80 cents per share.

The company’s board of directors have approved a $350 million share buyback program. At the end of the third fiscal quarter 2018, $134 million in capacity remains outstanding on the current share repurchase authorization that expires on August 31, 2018.