Jabil Inc (NYSE: JBL) stock rose over 3.8% in after-hours session on December 14th, 2017 as the group’s first quarter of FY 18 has posted better than expected results due to strong revenue growth across both the DMS and EMS segments, which resulted in 15 percent growth, year-on-year, of core earnings per share. Jabil stock has risen 26.97% in the last one year (source: Google Finance).
JBL in the first quarter of FY 18 has reported the adjusted earnings per share of 80 cents, beating the analysts’ estimates for the adjusted earnings per share of 78 cents. The company had reported the adjusted revenue growth of 9 percent to $5.59 billion in the first quarter of FY 18, beating the analysts’ estimates for revenue of $5.5 billion.
Moreover, in the first quarter of FY 18, Diversified Manufacturing Services (DMS) revenue grew 13 percent with a core margin (non-GAAP) of 5.2% and Electronics Manufacturing Services (EMS) revenue grew 6% with a core margin (non-GAAP) of 3.0%
Meanwhile, Jabil and Baicells had signed the Manufacturing Agreement for Baicells’ 10W mini-cell base station. As per the agreement, Baicells will leverage Jabil’s expertise in design for manufacturing (DFM), test development and hardware design to improve the reliability and quality of its wireless design products. Further, JBL would support Baicells’ global business expansion and provide advanced manufacturing services to sites in the U.S., China, Southeast Asia, Brazil and Europe.
Additionally, Jabil has authorized a share repurchase program of up to $450 million worth of shares of the company’s common stock, which will expire on August 31st, 2018. This represents the second portion of the previously announced two-year capital return framework planned to return approximately 40 percent of cash flow from operations to shareholders, not to exceed $1 billion, through dividends and share repurchases. JBL’s initial $400 million repurchase authorization as part of this framework was planned to be completed by August 31st, 2017.
For the second quarter of FY 18, Jabil expects the net revenue to be in the range of $4.75 billion to $5.05 billion, Core operating income (Non-GAAP) is expected to be in the range of $160 million to $200 million and core diluted earnings per share (Non-GAAP) is expected to be in the range of $0.50 to $0.74 per diluted share. Further, in FY 18 for Diversified Manufacturing Services segment, the company expects the revenue to increase by 25 percent year-on-year, Electronics Manufacturing Services revenue is expected to increase revenue 1 percent year-on-year and overall the total company’s revenue is expected to rise 10 percent year-on-year.