Jabil Inc (NYSE:JBL) stock rose 9.45% (As on December 18, 11:20:28 AM UTC-4, Source: Google Finance) after the company reported better-than-expected first quarter fiscal 2025 results and raised its full-year outlook. Core operating income for the quarter came in at $401,000,000 or 5.8 percent of revenue, a solid improvement of 20 basis points compared to last year. Net interest expense was better than expected, coming in at $65,000,000 which was due to lower inventory levels and strong working capital management. On a GAAP basis, operating income was $318,000,000. DMS segment posted revenue of $3,500,000,000 which exceeded expectations by $79,000,000. This was primarily due to stronger growth in the connected devices business, although it was slightly offset by lower than expected revenue in the automotive business. In the EMS segment, the company saw revenue of $3,500,000,000 which was $285,000,000 higher than anticipated. This was driven by stronger demand in the advanced networking markets as the company closed out the year. While EMS revenue was down roughly 13% year over year, mainly due to the ongoing softness in the end markets like 5 gs, renewable energy, and digital print. The company did see solid year on year growth across the cloud, semi cap and warehouse automation markets. This dynamic drove core margins for EMS to 6.1% in Q4, up an impressive 90 basis points year over year. Moving now to the end market performance for the year. Compared to the thoughts in June, connected devices, networking and storage came in better than anticipated, while auto and transport came in slightly lower.

JBL in the first quarter of FY 25 has reported the adjusted earnings per share of $2, beating the analysts’ estimates for the adjusted earnings per share of $1.88. The company had reported the adjusted revenue growth of 3.4 percent to $7 billion in the first quarter of FY 25, beating the analysts’ estimates for revenue of $6.61 billion. This was driven by stronger than expected results in the connected devices, networking and storage markets.

Jabil Circuit expects Q2 2025 EPS to be in the range of $1.60-$2.00 versus the analyst consensus of $1.80. Jabil Circuit expects Q2 2025 revenue to be in the range of $6.10B-$6.70B versus the analyst consensus of $6.28B.

Looking ahead, Jabil raised its fiscal 2025 guidance. Jabil Circuit expects FY 2025 EPS to be in the range of $8.75 versus the analyst consensus of $8.69. Jabil Circuit expects FY 2025 revenue to be in the range of $27.30B,  versus the analyst consensus of $27.04B.