Jabil Inc. Reports Decreased Profit But Beats Earnings Estimates

Jabil Inc. has reported a decline in profits for the first quarter, yet managed to exceed Wall Street's expectations. The company reported earnings of $100 million, translating to $0.88 per share, even as revenues fell significantly.

Date: 18-12-2024

AI Rating: 5

Earnings Per Share (EPS): Jabil Inc. reported an EPS of $0.88, down from $1.47 in the same quarter last year. However, this figure beat analysts' expectations of $1.88 per share, showcasing a positive aspect despite the overall decrease.

Revenue Growth: The company's revenue dropped significantly by 16.6%, falling from $8.387 billion to $6.994 billion year-over-year. This decline indicates potential challenges in sales or market share.

Guidance: Jabil's guidance for the next quarter indicates potential recovery, with EPS expectations set between $1.60 and $2 and revenue guidance ranging from $6.1 to $6.7 billion. This suggests analysts believe there may be a rebound in performance ahead.

Overall Rating: Based on the report, while the reduction in profits and revenue is concerning, the fact that the company beat EPS expectations and has set an optimistic guidance suggests some positive momentum. Therefore, the ratings are as follows:

EPS Rating: 7 (slightly positive due to beating estimates)
Revenue Rating: 4 (strongly negative due to a significant decrease)

Considering these factors, the overall rating for Jabil Inc. based on the report is 5, indicating slight negative sentiment overall.

Stocks: JBL