JBL - Jabil surges after posting strong Q4 earnings

2023-09-28 12:09:28 ET

Investors snapped up Jabil ( NYSE: JBL ) shares on Thursday after the U.S.-based manufacturing company reported fourth-quarter earnings above analysts’ estimate.

The stock surged over 14%, even as revenue of $8.5 billion for the reported quarter missed Street’s expectation. The surge added nearly $2 billion to the company’s market value of $13.77 billion, according to last close.

Florida-based Jabil forecast current quarter adjusted Earnings Per Share (EPS) between $2.40 per share and $2.80 per share, while revenue is expected to be between $8.4 billion and $9 billion.

The company posted fourth-quarter adjusted EPS of $2.45, surpassing expectation by $0.13.

A recent Seeking Alpha analysis said that the company has seen strong growth over the past decade and deserves a higher multiple.

Wall Street analysts and Seeking Alpha’s Quant rating consider the stock a “buy”, while Seeking Alpha analysts rated it a “hold”. The stock grew nearly 80% so far this year.

Earlier in August, Jabil and BYD Electronic have agreed to divest Jabil’s Mobility business to the Chinese automaker’s electronics unit for cash in a transaction valued at $2.2 billion.

More on Jabil

• Jabil: What A Transformation!
• What The $2.2 Billion BYD Deal Means For Jabil Shareholders
• Unleashing Jabil's Potential: How Diversification And Innovation Drive Future Growth
• Biggest stock movers today: GameStop, Peloton, Micron Technology, CarMax and more

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