Jabil Inc (NYSE:JBL) stock fell 0.075% (As on June 17, 11:14:48 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. On an enterprise level, revenue grew by 15% year over year and 10% sequentially as demand across end markets remain well ahead of supply. Core operating income during the quarter was $352 million, an increase of 27% year over year, representing a core operating margin of 4.2%, up 40 basis points over the prior year. Revenue for the EMS segment came in at $4.5 billion, an increase of 23% on a year-over-year basis. The stronger year-over-year performance in the EMS segment was extremely broad-based, with strength in the 5G Wireless & Cloud and Networking & Storage businesses, where the company gained additional share during the quarter as a result of the ability to execute in complex supply chains and deliver critical parts and components. Core margin for the segment was 4.6%, up 80 basis points over the prior year, reflecting exceptional cost control on higher-than-anticipated revenue.
JBL in the third quarter of FY 22 has reported the adjusted earnings per share of $1.72, beating the analysts’ estimates for the adjusted earnings per share of $1.62, according to Zacks Investment Research. The company had reported the adjusted revenue of $8.33 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $8.21 billion.
Additionally, at the end of Q3, finished goods represented a very small level at approximately 11% of inventory, consistent with Q2. The third quarter cash flows from operations were $545 million, and net capital expenditures totaled $324 million. From a total debt-to-core EBITDA level, the company exited the quarter approximately 1.3 times and with cash balances of $1.1 billion. During Q3, the company repurchased approximately 3.6 million shares for $203 million, and for the year, the company has repurchased 7.9 million shares for $475 million.
For the fourth quarter ending in August, Jabil expects its per-share earnings to range from $1.94 to $2.34. Analysts surveyed by Zacks had forecast adjusted earnings per share of $2.02. The company said it expects revenue in the range of $8.1 billion to $8.7 billion for the fiscal fourth quarter. Analysts surveyed by Zacks had expected revenue of $8.28 billion.
Jabil expects full-year earnings to be $7.45 per share, with revenue expected to be $32.8 billion.