JBL - Why Jabil's Stock Is Down Today
2023-03-16 14:36:53 ET
Electronics manufacturing expert Jabil (NYSE: JBL) saw share prices dip as much as 7.6% lower on Thursday morning, following the earnings report for the second quarter of fiscal year 2023. The stock started to climb back from that early-morning trough, showing a milder 3.5% haircut by 12:45 p.m. ET.
At first blush, the price drop seems strange. Jabil reported 12% year-over-year earnings growth, landing at $1.88 per share, and revenues rose 7% to $8.13 billion. Both headline figures edged out Wall Street's consensus expectations. Guidance for the next quarter and full year was also above the current Street projections.
Shouldn't that be enough to drive Jabil's stock higher today? As it turns out, investors may have expected more than in-line guidance and modest growth this time. Electronics manufacturers have posted robust stock returns over the last year while the broader market struggled, and Jabil approached this report with a sector-leading one-year gain of 53%.
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Why Jabil's Stock Is Down Today