Jabil Vaults on Q3 Numbers

Jabil Inc (NYSE:JBL) reported in-line earnings for its third quarter, while sales exceeded estimates. The company also issued in-line Q4 guidance.

The company, based in St. Petersburg, Fla., revealed that net revenue: $6.1 billion, while Diversified Manufacturing Services (DMS) year-on-year revenue decreased 6%

Jabil’s Electronics Manufacturing Services experienced year-on-year revenue growth of 26%. U.S. GAAP operating income was $140.9 million, or 28 cents per share. Core operating income (Non-GAAP) was $185.8 million. Core diluted earnings per share (Non-GAAP)proved to be 57 cents

During the third fiscal quarter, according to Tuesday’s news release, Jabil successfully transitioned additional sites from Johnson & Johnson Medical Devices Companies (JJMDC) as part of the previously announced strategic collaboration between the companies.

Fourth-quarter outlook revealed that net revenue was to come in between $6.3 and $6.9 billion, with U.S. GAAP operating income forecast for between $169 and $235 million, while diluted earnings per share is foreseen between 47 cents and 71 cents.

"I’m extremely pleased with our third quarter performance, highlighted by solid operational excellence and strong financial results. The team delivered 20 basis points of core margin expansion on double-digit revenue growth, culminating in an impressive 24% core EPS growth, year-over-year," said CEO Mark Mondello. "Our strong year-to-date results validate that our diversification strategy has firmly taken hold," he added.

Jabil is a product solutions company providing comprehensive design, manufacturing, supply chain and product management services, operating in 29 countries.

Shares gained $1.28, or 4.7%, to $28.60