Jabil (JBL 30.22, -0.42) has surrendered its opening gain, trading lower by 1.5%, despite better than expected quarterly results and upbeat guidance for fiscal year 2018.
The provider of advanced manufacturing solutions to the technology industry reported above-consensus third quarter earnings of $0.31 per share. The results came in just above the midpoint of the company's guidance for bottom-line results between $0.19 per share and $0.39 per share. Revenue increased 4.1% year-over-year to $4.49 billion, which was also ahead of expectations.
Jabil Chief Executive Officer Mark Mondello commented on the quarter, saying, "I'm pleased with our third quarter results as both business segments performed quite well. In Diversified Manufacturing Services, the team delivered exceptional execution and cost controls against product road maps exhibiting massive scale and complexity, while we continued to see strong double-digit growth in healthcare and packaging. At the same time, our Electronics Manufacturing Services team continues to do an excellent job building broad revenue diversification, while developing end-market domain expertise, resulting in solid margin expansion."
For the fourth quarter, Jabil expects earnings between $0.50 per share and $0.74 per share on revenue between $4.70 billion and $5.10 billion. Diversified Manufacturing Services revenue is expected to grow about 26.0% year-over-year while Electronics Manufacturing Services revenue is expected to increase 2.0% year-over-year, resulting in total company sales growing 11.0% year-over-year.
The company also issued guidance for fiscal year 2018, calling for earnings of about $2.60 per share, which is ahead of current market expectations.