Reading time ( words)
Jabil Inc., reported preliminary, unaudited financial results for its third quarter of fiscal year 2018.
Third Quarter of Fiscal Year 2018 Highlights:
- Net revenue: $5.4 billion
- Diversified Manufacturing Services (DMS) Year-on-year revenue growth: 36%
- Electronics Manufacturing Services (EMS) Year-on-year revenue growth: 12%
- U.S. GAAP operating income: $113.0 million
- U.S. GAAP diluted earnings per share: $0.25
- Core operating income (Non-GAAP): $150.1 million
- Core diluted earnings per share (Non-GAAP): $0.46
“Our team achieved a strong third quarter characterized by solid revenue growth and core margin expansion, year-on-year, while navigating a challenging components market,” said CEO Mark Mondello. “Our DMS segment grew by 36%, well-ahead of expectations, and posted meaningful income growth on a yearly basis. Similarly, our EMS segment grew both revenue and earnings by double-digits during the quarter. Most importantly, these results reflect one of our most diversified earnings performances in recent memory giving us confidence in both our enterprise-level strategy and outlook,” he added.
“Based on our strong year-to-date results and the guidance we’re providing today for the fourth fiscal quarter, we now expect fiscal 2018 revenue and core earnings per share growth of 14% and 23%, respectively, as we deliver on our core earnings per share target of $2.60. Additionally, given the confidence we have in delivering $3.00 per share in fiscal 2019 and the value we see in our business, we’ve elected to increase and extend our capital return framework through fiscal 2019. This updated capital return framework now perfectly aligns with the final portion of our three-year strategic plan, and reflects management’s confidence to generate additional cash flows on top of our desired investments for the business,” added Mondello.
Jabil’s Board Authorizes $350 Million Share Repurchase:
Since the inception of the Capital Return Framework in 2016, Jabil has repurchased $716 million in Jabil common stock and distributed $118 million to shareholders via its quarterly dividend. At the end of the third fiscal quarter, $134 million in capacity remains outstanding on our current share repurchase authorization that expires on August 31, 2018.
Today, Jabil is announcing that its Board of Directors has authorized an additional share repurchase program for the purchase of up to $350 million in Jabil common stock. The share repurchase authorization expires on August 31, 2019. The shares will be repurchased from time-to-time through various methods, including open market repurchases, at the Company's discretion and subject to market conditions and other factors.
Jabil is a product solutions company providing comprehensive design, manufacturing, supply chain and product management services. Operating from over 100 facilities in 29 countries, Jabil delivers innovative, integrated and tailored solutions to customers across a broad range of industries. For more information, visit jabil.com.